Memory stocks surge as Microsoft earnings ease AI spending fears

Memory and storage stocks staged a broad rally on Thursday, with shares across the sector posting double-digit gains after Microsoft ↗ 3.02% delivered strong fiscal fourth-quarter results that reaffirmed the durability of AI infrastructure spending. The move reversed days of steep losses that had wiped out a substantial chunk of the sector's 2026 gains.

Microsoft Results Spark Rebound

The catalyst was Microsoft's earnings report, released after market close on Wednesday. The company posted revenue of $90 billion for its fiscal fourth quarter ended June 2026, an 18% year-over-year increase, with diluted earnings per share of $4.81, up 32%. Capital expenditures hit $41 billion in the quarter, up nearly 70% from a year earlier, as the company continued to build out data center capacity for AI workloads. Microsoft said it expects to spend roughly $175 billion on AI infrastructure in calendar year 2026.nytimes+1

The results helped ease growing fears that hyperscale spending on AI had peaked, a concern that had driven memory stocks sharply lower in recent sessions. Micron ↘ 5.90%, SK Hynix ↘ 3.54%, SanDisk ↘ 5.09%, Western Digital ↗ 2.21%, and Seagate ↗ 0.52% all rallied in double-digit territory on Thursday, according to 247 Wall St.

Samsung and KOSPI Lead Asia Higher

The rally had already begun in Asia. South Korea's KOSPI rose more than 4% on Thursday, partly recovering from a nearly 16% two-day slump, as Samsung Electronics climbed nearly 3%. Samsung's rebound came after the company reported record semiconductor operating profit driven by robust AI-related memory demand, with expectations for continued strength in AI infrastructure spending. Other gainers included LG Energy Solution (7.2%), KB Financial Group ↘ 2.70% (5.5%), and HD Hyundai Heavy Industries (5.1%).tradingview

Samsung had reported preliminary second-quarter operating profit of 89.4 trillion won (roughly $58.4 billion), a 19-fold increase from a year earlier, marking its third consecutive record quarter.bbc+1

Seagate Earnings Add Fuel

Seagate had separately beaten expectations when it reported fiscal fourth-quarter results on Tuesday, posting adjusted earnings of $5.71 per share on revenue of $3.63 billion, well above the consensus estimate of $5.09 per share. The company cited "durable" demand from data center customers as a key driver.investors+2

Still, caution lingered. The Federal Reserve's higher-for-longer policy stance and renewed U.S. strikes on Iran kept geopolitical risks elevated, tempering gains across global markets.tradingview