Stocks Rally Before the Open on Upbeat Micron Earnings, U.S. PCE Inflation Data in Focus

Micron Technology posted fiscal year 2025 revenue of $37.4 billion, a 48.9% year-over-year surge, with diluted EPS of $7.59 and gross margins expanding to 39.8%. Net margins came in at 22.8%, reflecting genuine operating leverage as AI-driven HBM memory demand continues to fill Micron's order book. The results are broadly viewed as 'upbeat' and are catalyzing a broader pre-market equity rally.

The Micron print matters beyond the stock itself — it's a read-through for the entire memory and AI infrastructure supply chain, touching names like NVIDIA (HBM customer), SK Hynix, Samsung, and equipment suppliers such as AMAT and LRCX. A near-50% revenue growth rate at this scale signals that AI capex is still accelerating rather than plateauing.

The macro overlay is the key tension point for today's session. U.S. PCE inflation data is due, and a hot print could flip the risk-on mood by pushing back Fed rate-cut expectations — compressing semis multiples even if the fundamental story is strong. Conversely, a soft PCE reading could turbocharge the rally and push MU toward price-target gaps.

For MU specifically, the question is how much of this beat is already priced in given the stock's 2024-2025 run. At 39.8% gross margins and nearly 50% revenue growth, the earnings quality is undeniable — but the stock's near-term direction into and after the open will hinge heavily on whether macro headwinds (PCE surprise) emerge to cap the celebratory tone.