U.S. stock futures rise following upbeat Micron earnings

KOSPI opened lower, with Samsung Electronics and SK hynix down over 1% despite Micron's record results. U.S. inflation data was below expectations, but rising Treasury yields weighed on sentiment. Micron reported $54.23B revenue for Q4, exceeding estimates. Analysts note market focus on earnings strength amid high interest rates.

Micron Technology reported fiscal Q4 2026 revenue of $54.23B, up 379% YoY, and full-year revenue of $133.19B. Adjusted net income was $38.40B, or $33.42 per share, beating estimates. Despite strong results, shares fell after-hours due to increased capital expenditure plans for fiscal 2027, with management citing demand for more DRAM cleanroom space. Guidance for Q1 2027 revenue is $61.5B, above consensus, with earnings projected at $38.15 per share.

Micron reported a strong quarter with revenue up 379% YoY to $54.23B, beating estimates. Adjusted EPS rose 1,002% to $33.42. The company expects tight supply and strong demand to continue through 2028, raising its price target to $1,200. Micron plans to increase capital expenditures to meet demand and may announce a share buyback program.

Micron Technology (MU) reported on its Q4 earnings call, highlighting latent demand for memory in AI systems. The company expects high-bandwidth memory (HBM) shipments to grow faster than conventional DRAM through 2028 and increased HBM pricing for 2027. Micron also discussed supply agreements, capacity investments, and its technology lead over Chinese competitors. China exposure is expected to fall to single digits in fiscal 2027.

Micron's earnings beat and raised outlook boosted Nasdaq-100 futures. December E-mini Nasdaq-100 futures traded within 30,725.75 to 30,812.75. Tech outperformed other indices, while inflation data and Fed comments influenced market sentiment. Key events include jobless claims and Nike's earnings.

Micron Technology reported a 63% increase in long-term chip contracts, with 26 strategic agreements signed in Q3, up from 16 in Q2. Revenue covered by these contracts rose to 35% from 25%. Micron's remaining performance obligations increased to $150 billion, and financial commitments rose to $32 billion. Samsung and SK hynix are also expanding long-term deals. Micron plans to increase capital spending to over $50 billion in fiscal 2027, up from $27 billion.