Asian chip stocks surge after Micron beats forecasts; oil falls again

Asian markets opened mixed but chip stocks surged after Micron delivered a far stronger-than-expected fiscal third quarter and a bullish outlook, while oil extended its decline. In Seoul and Tokyo, semiconductor shares led gains, and crude prices slipped further after dropping about 4% the previous day.

Micron jumped 15.8% in after-hours trading after reporting revenue of $41.46 billion for the fiscal third quarter, well above analysts’ estimate of $35.84 billion and up from $9.3 billion a year earlier. Net income reached $28.24 billion versus $1.89 billion a year earlier, gross margin improved to 84.9% from 74.9%, and adjusted earnings were $25.11 per share, above the expected $20.78. The company also forecast about $50 billion in fiscal fourth-quarter revenue, compared with a market consensus of $43.58 billion.

Micron said growth was broad-based across its four business segments. Data center chip revenue rose to $11.5 billion from $1.53 billion, a 652% increase. Cloud memory revenue climbed 300% to $13.77 billion, mobile revenue rose 250% to $11.52 billion, and automotive chip revenue increased more than 300% to $4.63 billion.

South Korea’s SK Hynix said it intends to list American depositary receipts on Nasdaq, planning to issue 17.79 million shares in a deal worth $29.6 billion, with trading set to begin July 10, though the date may change. The company said the listing would broaden its investor base and strengthen its position in the U.S., which it called a center of AI innovation. SK Hynix shares rose 10% in Seoul.

Regional markets were boosted by the Micron report, with Japan’s Nikkei up 3.9% and South Korea’s Kospi up 5.5%. Brent fell 1.9% to $72.3 a barrel and WTI fell 1.7% to $69.1. In Hong Kong, Alibaba and Xiaomi dropped 4%, while Trip.com fell 9.2% after its results.