Micron opened the new quarter with a bang, signing a Strategic Customer Agreement with General Motors to secure long-term supply of LPDRAM, NOR and UFS NAND for GM's vehicles. It's one of 16 such agreements Micron flagged during its blowout Q3, and it'll be backed by Micron's expanding U.S. footprint including its modernized Virginia plant. Micron stock had already jumped roughly 15% after earnings, with fiscal Q3 revenue of $41.46 billion versus $35.84 billion expected.
Q2 2026 wrapped as the strongest quarter for major U.S. indexes since the pandemic-era rebound of 2020. On June 30 the Nasdaq closed at 26,213.72, up 1.52%, and the S&P 500 finished at 7,449.36, up 0.79%, while the Dow set a second straight record close at 52,319.20. Futures slipped slightly into July 1 as traders caught their breath ahead of Q2 earnings season.
The June 30 rally was led by semiconductors across the board. Arm Holdings gained 4.47% and ASML advanced 4.44%, while KLA popped 5.94%, Lam Research rose 4.91% and Marvell Technology added 4.76%. The Philadelphia Semiconductor Index is now up 93% on the year, powered by the AI capex supercycle.
Even with the late bounce, the Magnificent Seven lost a combined $2.3 trillion in market cap over June as investors reassessed the scale of AI infrastructure spending. Microsoft was hit hardest, down about 20% on the month, while Nvidia gave back roughly 13% and Apple and Amazon each shed around 8%. All eyes now turn to Q2 earnings for proof of return on those enormous data-center bills.
After that roughly 13% June slide, the Street is leaning bullish on Nvidia. Morningstar pegs the stock as about 31% undervalued against a $280 fair value, while the average target from 57 analysts sits near $296, versus a last close around $220. Citi kept its Buy and $270 target, arguing demand visibility now extends into 2027.
OpenAI confirmed a $110 billion funding round at a $730 billion pre-money valuation, with $50 billion from Amazon, $30 billion from Nvidia and $30 billion from SoftBank. It's another loop in the "circular" AI financing web tying the biggest names together. Note: OpenAI is still private, so this is a funding watch item, not a tradable name.
Broadcom is down more than 20% from its early-June highs, still nursing wounds from a post-earnings drop of over 12% when its AI outlook underwhelmed. That was despite a record fiscal Q2 with $22.2 billion in total revenue, including roughly $10.8 billion from AI chips. Analysts remain constructive, with a consensus "Strong Buy" and an average target near $523.73.
Zooming out on Micron's blowout quarter: cloud memory revenue jumped over 300% to $13.77 billion, mobile and client rose 250% to $11.52 billion, and automotive and embedded more than quadrupled to $4.63 billion. Guidance for the current quarter is roughly $50 billion, up from $11.3 billion a year ago, as HBM supply stays fully booked. The stock is up about 700% over the past year, pushing its market cap past $1 trillion.
Sentiment on CrowdStrike cooled into quarter-end. Bernstein slapped a Hold on the name June 29, and Arete downgraded it to Neutral from Buy on June 28. That tempers a more upbeat Wells Fargo Buy from earlier in the month, leaving the AI-security darling with a split scorecard.
The quantum-computing crowd is living up to its reputation for volatility. IonQ fell 28.8% in June even as it holds a Buy consensus from 12 analysts, with a price target around $71.25. It's a reminder that the highest-beta corners of the AI trade cut both ways.
AI Stocks
