The financial landscape felt seismic tremors as the final week of Q3 ebbed away, creating ripples across Wall Street and the crypto sphere.
Notably, the robust performance of Micron Technology (NASDAQ:MU) birthed high hopes for the artificial intelligence (AI) realm, while Meta Platforms (NASDAQ: META) unfurled novel AI innovations.
Within the confines of OpenAI, a whisper of executive resignations and whispers of restructuring lit the skies with sparks of conjecture.
Stay abreast of the revolutionary shifts in the tech domain through the lens of Investing News Network’s comprehensive overview.
1. Robust US Employment Numbers Seal the Week
As the curtain lifted on the week, Wall Street’s pulse quickened with a modest uptick on Monday (September 23). The unveiling of the September flash S&P Global Services Purchasing Managers’ Index at 55.4, slightly surpassing predictions at 55.2, added more layers to the upbeat economic sentiment.
However, Phil Blancato, Ladenburg Thalmann Asset Management’s CEO, voiced a cautionary note, highlighting the disconnect between the market’s expectations of further rate cuts by the US Federal Reserve and the Federal Reserve’s probable actions, setting the stage for potential volatility in the impending weeks.
On Tuesday (September 24), China’s bold rollout of stimulus measures aimed at reinvigorating its economic sinews, including the issuance of special sovereign bonds totaling around 2 trillion yuan, sent global stocks soaring.
The S&P/TSX Composite Index (INDEXTSI: OSPTX), S&P 500 (INDEXSP: .INX), and the Nasdaq Composite (INDEXNASDAQ: .IXIC) danced to new closing records. The uptick in chip stocks such as Qualcomm (NASDAQ: QCOM) and Intel (NASDAQ: INTC) propelled the PHLX Semiconductor Sector (INDEXNASDAQ: SOX) by a solid 1.23 percent.
While Wednesday saw stocks treading water, the Nasdaq Composite exhibited a minimal downturn of 0.13 percent post the opening bell. By midday, the resurgence of major players like NVIDIA (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL) orchestrated a jolting turnaround for the tech-heavy index. Ultimately, it closed a whisker above its starting mark, while the S&P 500 and S&P/TSX Composite Index witnessed a modest dip.
Thursday’s (September 26) unveiling of the weekly initial jobless claims data for the US, showing 218,000 fresh claims against an estimated 225,000, served as a clarion call for a revitalized labor market.
The tech landscape, amongst the myriad of beneficiaries of this economic dance,
The Market Dance: Stocks Rise as Micron Shines, Bitcoin Breaks Free, and Micron Delivers Stellar Q4 Results
Stock Market Rally Fueled by Micron’s Positive Performance
The S&P/TSX Composite Index scaled new heights, crossing the 24,000 mark, energized by Micron’s optimistic outlook announced after Wednesday’s closing bell. Chip stocks surged, propelling the PHLX Semiconductor Sector up by 3.77 percent. The S&P 500 hit an intraday peak of 5,767.37 before tapering off slightly to 5,745.37, still up by 0.4 percent. Notably, the Russell 2000 (INDEXRUSSELL:RUT) led the charge, closing 0.62 percent higher.
Bitcoin Unlocks Price Potential
The digital asset market awoke with renewed vigor following the Fed’s rate cut. While US$65,000 loomed as a formidable resistance level, indications from historical data hinted at an imminent breakthrough. Bitcoin and Ether maintained stability mid-week, with altcoins experiencing modest gains. Their relative calm juxtaposed against the surge in Asian stocks hinted at a closer link to US economic indicators.
Bitcoin ETFs sustained their upward momentum for the second successive week, drawing in inflows of US$136 million on Wednesday, the highest in nearly a month. However, Ether faced a setback as the SEC deferred its verdict on approving options trading for spot Ethereum ETFs until November 11. This move followed the green light given to a similar product for BlackRock’s iShares Bitcoin Trust ETF (NASDAQ:IBIT) the prior week.
Micron Shines with Stellar Q4 Results
Micron unveiled its financial outcomes for the fourth fiscal quarter and the full 2024 year on Wednesday, sparking an 18 percent surge in its share price by Thursday morning. Closing the week at US$107.47, Micron’s shares demonstrated a 16 percent weekly uptick and a remarkable 9.82 percent monthly gain.
In Q4, Micron raked in revenue totaling US$7.75 billion, surpassing the US$6.81 billion from the previous quarter and the US$4.01 billion from the same period last year. The full-year revenue soared to US$25.11 billion compared to the US$9.57 billion posted in the previous year.
Commenting on their performance, Micron President and CEO Sanjay Mehrotra remarked, “Micron’s fiscal Q4 yielded a 93 percent year-over-year revenue growth, fueled by robust AI demand propelling our data center DRAM products and high bandwidth memory. Our NAND revenue milestone was anchored by stellar data center SSD sales, surpassing the US$1 billion mark in quarterly revenue for the first time.”
“Heading into fiscal 2025, Micron boasts its strongest competitive position in history. We anticipate setting revenue records in fiscal Q1 and a substantial revenue milestone with markedly improved profitability in fiscal 2025,” added Mehrotra.
The Shifting Winds of Innovation in the Tech Sector
Micron Technology has unveiled an optimistic outlook for its first fiscal quarter of 2025, projecting revenue around US$8.7 billion. This forecast signifies a strong belief in the ongoing robust demand for semiconductor chips, setting a positive tone for the company’s future endeavors.
The positive performance of Micron has not only bolstered its own position in the market but has also had a ripple effect on other chip stocks. NVIDIA, Taiwan Semiconductor Manufacturing Company, Advanced Micro Devices, and Qualcomm all experienced notable increases in their share prices as a result.
Meta’s Dive and Rise in the Market
Contrastingly, Meta witnessed a minor decline of 0.44 percent in its share price post the Meta Connect event. Despite this setback, the tech giant shone a spotlight on a plethora of revolutionary AI-driven innovations, stealing the limelight in the tech sphere.
Meta dazzled audiences with the debut of the cost-effective Meta Quest 3S reality headset, slated to replace its forerunner models by the year’s end. Additionally, the unveiling of the Wayfarer Ray-Ban Meta smart glasses, boasting live AI-powered reminders and translations, hinted at a future filled with cutting-edge technological marvels.
Mark Zuckerberg, Meta’s CEO, showcased a sneak peek into the company’s upcoming AI enhancements, teasing features like lip-synced translations of Reels and advanced voice chat capabilities. The reveal of the long-anticipated holographic augmented reality glasses, Orion, offered a glimpse into Meta’s bold vision for the future.
Further enhancing its AI prowess, Meta introduced the latest iteration of its language model, Llama 3.2, tailored for edge and mobile devices. This versatile model, with enhanced multilingual support for eight languages, promises to revolutionize communication and processing capabilities.
The Speculation Surrounding OpenAI’s Potential Restructuring
Rumors surrounding OpenAI’s prospective transition into a for-profit entity cast a shadow over the organization’s future. Speculations were fueled by reports hinting at a strategic restructuring to appeal to potential investors, potentially altering the landscape of AI innovation.
The alleged departure of Chief Technology Officer Mira Murati and two other executives added weight to the restructuring rumors, painting a picture of significant changes on the horizon for OpenAI. The transformation, if materialized, would also entitle CEO Sam Altman to his inaugural equity stake in the company.
The uncertainty surrounding the exact timeline of OpenAI’s restructuring leaves the tech community on edge, eagerly awaiting further developments that could reshape the future of AI advancement.