Top Stories This Morning: Micron Restores Market Confidence in the AI Boom; Iran Wants to Control the Strait of Hormuz

Micron’s strong earnings report convinced investors that the artificial intelligence boom is far from over and provided a boost to global stock markets. Iran made it clear that shipping through the Strait of Hormuz is permitted only along approved routes, warning of the dangers of any alternative routes. Read about these and other topics in our roundup of key events as of the morning of June 25.

Global stock markets recouped some of their losses following a two-day decline, thanks to a strong sales forecast from Micron Technology, the largest U.S. manufacturer of memory chips. Its earnings report and forward-looking guidance bolstered investor confidence in the prospects for artificial intelligence, according to Bloomberg. Nasdaq Composite futures jumped nearly 2%, while S&P 500 futures rose 0.6%. South Korea’s Kospi index soared 6%, while the broad MSCI Asia Pacific index rose 1.7%.

Micron’s stock rose by about 15% in after-hours trading. The company reported record quarterly revenue, gross margin, and profit, exceeding market expectations. The manufacturer also signed 16 long-term agreements with key customers, 14 of which guarantee at least $100 billion in revenue and include advance payment commitments totaling $22 billion. Micron noted that memory has become a strategically important component for AI systems, which is why buyers are seeking to secure their supplies in advance.

Shares of South Korea’s SK Hynix jumped more than 12% following the announcement of plans to raise up to $29.6 billion through a listing of American Depositary Receipts on Nasdaq and the release of Micron’s strong quarterly earnings report, which confirmed a shortage of memory for artificial intelligence systems, according to CNBC.

Trading in ADRs could begin as early as July 10. Investors expect that entering the U.S. market will narrow SK Hynix’s valuation discount relative to Micron and broaden its base of international shareholders.

The Islamic Revolutionary Guard Corps stated that ships are permitted to pass through the Strait of Hormuz only along routes approved by Iran, and that any alternative corridors not agreed upon with Tehran are “unacceptable and dangerous,” CNBC reports. The warning came a week after the U.S. and Iran signed a memorandum to resume shipping through the strategically important strait.

Despite a partial resumption of traffic, shipping volumes remain below pre-war levels. Analysts believe that if Iran maintains de facto control over shipping in the Strait of Hormuz, oil traffic could remain below previous levels for a long time, CNBC notes.

Brent crude has been falling for the fourth consecutive trading session and is trading below $73 per barrel. Combined with Micron’s strong earnings report, the price decline has brought relief to the stock markets, according to Bloomberg.

Qualcomm’s stock rose more than 13% in after-hours trading after the company doubled its revenue target for its non-smartphone business to $40 billion by fiscal year 2029, according to Yahoo Finance. Of that total, about $15 billion is expected to come from the data center segment, where Qualcomm plans to produce AI chips, servers, software, and specialized processors.

The company is entering a market dominated by Nvidia, where AMD is also actively expanding its presence, the publication notes. Qualcomm CEO Cristiano Amon stated that the largest cloud and AI companies are interested in the emergence of a new strong player, as demand for AI accelerators continues to grow rapidly.

The price of Bitcoin has fallen below the $60,000 mark for the first time since October 2024, according to Bloomberg. Over the past 24 hours, nearly $800 million in long positions have been liquidated on the crypto market, and investors are concerned about weakening demand from retail traders and a decline in buying activity by Michael Saylor’s Strategy, one of the largest corporate holders of Bitcoin.

Additional pressure is coming from shifting market expectations regarding interest rates and Bitcoin’s declining appeal as a safe-haven asset. Analysts note that some of the capital from retail investors is flowing into stocks of AI-related companies, while institutional investors are increasingly viewing cryptocurrency as a high-risk asset rather than a safe-haven asset, the agency reports.

This article was AI-translated and verified by a human editor