By Johann M Cherian and Twesha Dikshit
June 25 (Reuters) – Nasdaq futures led gains on Thursday, advancing over 2% as investors returned to technology shares after upbeat forecasts from chipmakers Micron and Qualcomm pointed to strong demand for AI infrastructure, while key inflation data was awaited later in the day.
Micron and Qualcomm signaled robust demand for AI infrastructure, with customers committing $22 billion to secure Micron’s memory chips and Qualcomm forecasting $15 billion in data centre revenue by 2029.
Micron soared 17% in premarket trading while Qualcomm jumped 12%. Other memory chips also moved higher, with SanDisk, Western Digital and Seagate Technology rising between 8.5% and 13%. The strong forecasts also sent tech shares across Asia and Europe sharply higher.
“US equities have recovered some ground as Micron’s earnings have provided fresh reassurance that the AI investment cycle remains firmly intact,” said Daniela Hathorn, senior market analyst at Capital.com.
“That has helped lift sentiment across the semiconductor sector after recent weakness in high-growth names, suggesting investors remain willing to look through short-term volatility as long as the earnings outlook continues to justify elevated valuations.”
Global markets were awaiting earnings reports from both chipmakers to gauge if valuations of these stocks — along with those of chip designers, hyperscalers and other sectors benefitting from the broader AI boom — were justified.
U.S.-listed shares of Micron and Qualcomm have rallied over 200% and 50%, respectively, in this quarter alone. The Philadelphia SE Semiconductor Index is on track for its strongest quarter on record, according to LSEG data.
Concerns over debt-backed spending by hyperscalers and fears of a more hawkish Federal Reserve have fueled a market downturn this week. Micron’s strong forecasts can ease some of those worries despite the company outlining plans to increase capital expenditure.
The Nasdaq was still on track for its biggest monthly decline since March 2025, while the Philadelphia semiconductor index was headed for its worst week since the start of the Middle East conflict earlier this year.
At 4:32 a.m. ET, Dow E-minis were up 56 points, or 0.11%, S&P 500 E-minis were up 55.5 points, or 0.75%, and Nasdaq 100 E-minis were up 652.75 points, or 2.21%.
The focus will now turn to the Fed’s preferred inflation gauge, the Personal Consumption Expenditures Price Index, due at 8:30 a.m. ET. Economists polled by Reuters anticipate it to touch 4.1% on an annual basis, which is more than twice the central bank’s target.
“A stronger-than-expected set of numbers, however, could further embolden Fed hawks and reverse the post-Micron optimism,” said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank. This can bring back the unpleasant topic of rising borrowing costs at a time when Big Tech is taking on increasing amounts of debt to finance its AI ambitions, Ozkardeskaya added.
In response to rising price pressures, traders anticipate the Fed to lift interest rates by at least 25 basis points as early as September, the CME Group’s FedWatch Tool showed.Â
Still, with oil prices declining to levels last seen before the Iran war as stranded tankers exit the Strait of Hormuz, there is some optimism that inflationary pressures could ease.
Remarks from New York Fed President John Williams and Chicago Fed President Austan Goolsbee will also be parsed later in the day.
(Reporting by Johann M Cherian and Twesha Dikshit in Bengaluru; Editing by Nivedita Bhattacharjee and Joyjeet Das)
By Johann M Cherian and Twesha Dikshit | Reuters | © Copyright Thomson Reuters 2026.
