Micron's earnings exceed expectations; AI sector confidence rises; Korean index surges.

AI Demand Visibility Extended to 2028

Overview

Bank of America has released a report extending the visibility of AI demand until 2028, indicating that there will not be an oversupply of storage before that year. The report predicts that semiconductor equipment spending will reach $250 billion by 2028, a 23% increase from previous forecasts.

Semiconductor Market Insights

• DRAM/NAND supply levels are expected to remain above 110% until 2028, mitigating substantial excess risk.
• Micron's target price has been raised to $150.

Korean Market Performance

The KOSPI index surged over 5%, surpassing 8900 points, with SK Hynix rising nearly 11% as it prepares for ADR trading. Samsung Electronics also saw a nearly 5% increase.

Trump Cancels Housing Bill Signing

Housing Legislation Update

President Trump announced the cancellation of a signing ceremony for a bipartisan housing bill aimed at increasing construction. He stated that he wants Congress to first pass a voting bill.

Economic Implications

Trump emphasized the importance of lowering interest rates for the housing market, asserting that he understands real estate better than anyone.

Oil Market Developments

Oil Prices Decline

Global oil prices have returned to pre-conflict levels, with Brent crude falling by 4.3% to $73.74 per barrel. This decline is attributed to improved shipping conditions in the Strait of Hormuz.

Regulatory Pressure on Oil Companies

Trump has pressured oil companies to lower prices, threatening a Department of Justice investigation into price gouging.

U.S. Banking Sector Resilience

Stress Test Results

All major U.S. banks passed the Federal Reserve's annual stress tests, paving the way for significant stock buybacks and dividends.

Market Reactions

The three major U.S. stock indices closed mixed, with the Dow Jones up 0.36% and the Nasdaq down 0.43%.

Micron Technology's Strong Performance

Financial Results

Micron reported Q3 revenue of $41.46 billion, exceeding expectations, and projected Q4 revenue above Wall Street forecasts, driven by strong AI-related demand.

Qualcomm's Ambitious Goals

Qualcomm aims for $5 billion in data center revenue by FY2027 and over $15 billion by FY2029, with plans to launch a data center CPU by mid-2028.

Alibaba's Legal Action

Alibaba has confirmed it is suing the U.S. Department of Defense to be removed from the "Chinese Military Companies List," asserting it is not a military enterprise.

Nvidia's AI Optimism

Nvidia's CEO Jensen Huang expressed strong optimism about the long-term growth of the AI industry, stating that AI is now creating real economic value.

Conclusion

The financial landscape is evolving with significant developments in AI demand, housing legislation, oil prices, and banking resilience, indicating a complex interplay of market forces.