Stock Market Update

[BRIEFING.COM] The S&P 500 (+1.1%), Nasdaq Composite (+1.6%), and DJIA (+0.7%) continue to tick higher following a strong opening this morning.

Micron (MU 247.68, +22.16, +9.83%) delivered a historic performance for 1Q26, solidifying its position alongside NVIDIA (NVDA 173.24, +2.30, +1.35%) as a dominant force in the AI ecosystem. The company shattered estimates for both revenue and earnings while providing a Q2 outlook that far exceeded market expectations.

The blowout results have provided a significant lift to peer memory and storage stocks, including Sandisk (SNDK 221.39, +14.56, +7.04%), Seagate Tech (STX 288.27, +10.62, +3.82%), and Western Digital (WDC 176.32, +10.06, +6.05%), as the market recognizes a broad structural shift in data storage demand driven by AI.

The centerpiece of the report was the massive expansion in non-GAAP gross margin, which rose to 56.8% from 45.7% a year earlier. Guidance for Q2 projects a further leap to 68.0% (+/- 1.0%), driven by high-value products and extreme supply tightness. Revenue in the Cloud Memory segment surged by 99% year-over-year to $5.28 billion, fueled by the rapid build-out of AI infrastructure by data center customers.

Micron has effectively silenced any remaining doubts regarding the durability of the AI-driven memory cycle. By delivering record-breaking results and guidance that wasn't in the same orbit as prior estimates, the company has transitioned from a cyclical recovery story to a secular growth powerhouse. While traditional consumer segments like PCs and smartphones remain more balanced, the shift toward AI-heavy configurations is creating a pricing floor that benefits the entire industry.