From “it’s so over” to “we’re so back” – market sentiment flips fast these days on social media.
Just days after AI bubble fears resurfaced, Micron (MU), a critical supplier of memory chips used in AI infrastructure and data centers, has posted blowout earnings, reversing the bearish sentiment.
This led to U.S. technology futures trading up in pre-market on Thursday, with the Invesco QQQ up nearly 1% pre-market after falling almost 2% on Wednesday. Bitcoin, too, has stabilized above $87,000 following its wild swings in both directions on Wednesday. BTC and tech stocks tend to move in lockstep, with the AI boom at the center of the positive correlation since late 2022.
According to the latest earnings report, Micron reported Q1 2026 revenue of $13.6 billion, a 57% year-over-year increase. Gross margins surged to 56%, compared with 38% a year earlier, while operating income jumped to $6.1 billion. Net income reached $5.24 billion, nearly triple last year’s level, with diluted EPS of $4.60, beating Wall Street’s estimate of $3.96, according to FactSet data.
AI-driven demand was the standout theme. Micron’s cloud memory business unit saw revenue double year on year, while mobile and client revenue rose 63%, according to an earnings presentation. According to the conference call, the firm now forecasts Q2 2026 revenue of $18 to $19 billion, which is above the expectation of $17.8 billion, according to FactSet data. The management also said that it is effectively sold out of key AI memory products through 2026. Shares rose around 12% pre-market to about $250.
The strong results offered relief amid ongoing AI jitters at Oracle (ORCL), Broadcom (AVG) and CoreWeave (CRWV). AI and crypto-linked equities edged slightly higher pre-market, highlighting the growing crossover, which is being fueled by the AI narrative.
UPDATE (Dec. 18, 13:55 UTC): Updates to add company earnings, presentation and management discussion filings; analysts’ estimates.