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Micron reports another stellar quarter and blowout guidance

The memory chip specialist did it again.

Micron is whipsawing in after-hours trading despite reporting another quarter of fantastic results with an even better outlook.

For its fiscal Q2 (the period ended February 2026), the memory chip specialist reported:

Revenue: $23.86 billion (estimate $19.74 billion, guidance for $18.3 billion to $19.1 billion)
Adjusted earnings per share: $12.20 (estimate: $9.00, guidance for $8.22 to $8.62)

When Micron provided an outlook for this quarter three months ago, even the bottom ends of its adjusted sales and earnings guidance were above the most optimistic analyst estimates. That robust view prompted the stock to nearly double over the next 30 days, and accelerated investors’ interest in memory stocks, which benefitted from relatively inexpensive valuations, eye-popping earnings revisions, and strong pricing power as demand runs ahead of supply.

For Q3, management said to expect revenues of $33.5 billion (+/- $750 million) with adjusted earnings per share of $19.15 (+/- $0.40).

Both of those compare favorably with consensus estimates of $23.66 billion and $11.29, respectively.

“We think any update Micron can provide on (1) the degree they are undershipping end demand (last quarter Micron said that they could only support 50% to 2/3rd of key customer demand), (2) progress and structure on LTA agreements (specifically prepayments), and (3) views on demand growth in 2027 will be the key focus areas for investors,” wrote Morgan Stanley analyst Joseph Moore ahead of this release. “We are hearing buy side consensus north of $15 [for Q3], and while that number seems ultimately achievable, we aren't sure if they will guide that high.”

Luke Kawa, Tasha Matsumoto

Stocks sink as inflation fears rise

Stocks sank after a hotter-than-expected producer price index reading as well as a higher inflation forecast from the Fed amid rising energy prices.

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Federal Reserve leaves rates unchanged; dot plot still signals lower rates in the cards for 2026

A relatively dovish reaction function from the US central bank.

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Constellation, Talen, and NRG surge as BNP analysts see “golden (AI)ge” ahead for them

Power producers Talen Energy, Constellation Energy, and NRG jumped Wednesday, benefiting in part from a rosy write-up by analysts at BNP Paribas, who launched coverage of all three at “outperform” and argued that the AI energy trade — a big AI-related winner in recent years that has lagged a bit recently — is due for a second wind.

That view was in a broad note on the independent power producer segment of utilities industry that the analysts published Wednesday, titled “The Golden (AI)ge of IPPs.”

Here’s the gist of it:

US independent power producers (IPPs) have lagged the AI basket for 6+ months, after garnering much attention in 2023-1H25. Investors are caught up in the minutia of perceived headwinds: underwhelming pace of power purchase agreement deals, distributed behind-the-meter solutions stealing the ‘time-to-power’ edge, pressure for data centers to bring generation and not tighten the grid, etc.

And yet, as we demonstrate, despite all this noise, the wave of rising load is at the cusp of an acceleration that will nonetheless overwhelm new supply—well into the 2030s, in our view. Hop on or risk missing the resurgent AI trade this decade.

BNP’s price targets for the stocks — Constellation ($407), NRG ($232) and Talen ($549) — implied gains of 32%, 50%, and 68% respectively. (Though today’s gains would reduce those potential upside targets somewhat for new buyers.)

US independent power producers (IPPs) have lagged the AI basket for 6+ months, after garnering much attention in 2023-1H25. Investors are caught up in the minutia of perceived headwinds: underwhelming pace of power purchase agreement deals, distributed behind-the-meter solutions stealing the ‘time-to-power’ edge, pressure for data centers to bring generation and not tighten the grid, etc.

And yet, as we demonstrate, despite all this noise, the wave of rising load is at the cusp of an acceleration that will nonetheless overwhelm new supply—well into the 2030s, in our view. Hop on or risk missing the resurgent AI trade this decade.

Luke Kawa9h

Chinese tech giants rally after hiking AI prices

ADRs of Alibaba and Baidu are gaining in early trading after the Chinese tech giants announced AI price hikes.

Alibaba said that it’s hiking the price of its AI chips by up to 34% and raising the cost of cloud storage by 30%, with Baidu planning on increasing AI cloud product prices by up to 30%.

Tech companies in China and the US are aiming to show that AI is not just a technological breakthrough but also a core tool for moneymaking. And, well, raising the price of what you sell is one of the most basic ways to make more money!

“Baidu’s decision to raise AI cloud product prices by as much as 30%, according to Bloomberg News, is a positive development that signals a shift toward monetization rather than price competition,” wrote Bloomberg Intelligence analysts Robert Lea and Jasmine Lyu. “Baidu’s move mirrors similar steps by Tencent, Alibaba, and Zhipu, catalyzed by surging demand for agentic AI following the launch of OpenClaw.”

Micron reports another stellar quarter and blowout guidance

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