Micron Technology Joins Trillion-Dollar Club as AI Demand Drives Semiconductor Rally
Broad market optimism lifts US futures while crude oil prices retreat on diplomatic developments in Iran
Micron Technology shares rose more than 5% in early Wednesday trading, extending a powerful rally that saw the company’s market capitalisation surpass the $1 trillion threshold for the first time on Tuesday. The 19% surge on the previous session was driven by intense global demand for artificial intelligence-related memory chips and persistent supply shortages, with the stock’s value having roughly tripled over the course of the year.
The semiconductor momentum contributed to higher US stock market futures, with the Nasdaq 100 and S&P 500 pointing toward record highs. On Tuesday, the S&P 500 finished up 0.61% and the Nasdaq rose 1.19%, both hitting new intraday and closing peaks, although the Dow Jones Industrial Average slipped 0.23%. Early Wednesday, Nasdaq 100 futures climbed 0.49% and the Dow advanced 227 points, reflecting continued investor confidence in the sector.
South Korean chipmaker SK Hynix also recently crossed the $1 trillion market capitalisation mark, joining a select group of technology firms that includes Samsung Electronics, which reached the milestone earlier in May. Memory chipmakers have emerged as a preferred vehicle for AI-driven investment, a trend supported by a bullish note from UBS. The bank suggested that long-term procurement deals tied to AI infrastructure buildout could potentially push Micron’s stock to more than twice its current price.
In commodity markets, crude oil prices fell as hopes for a diplomatic truce in Iran tempered near-term supply concerns. West Texas Intermediate was trading near $90 a barrel, a drop of roughly 4% from the approximately $97 level where it closed on Friday, while Brent futures edged toward $93 a barrel.
Despite recent US strikes in southern Iran, diplomatic channels remained open. President Donald Trump described the ongoing negotiations as proceeding nicely, while a US Central Command spokesman stated that the strikes were carried out with restraint and did not violate the existing ceasefire framework. Meanwhile, broader geopolitical tensions are being addressed at a summit in Beijing, where the US has also approved H200 chip sales to Chinese firms, further boosting sentiment in the technology sector.
