June 25, 2026, (Inside AI) — Asian equities surged Thursday after robust earnings and bullish forecasts from chip giants Micron and Qualcomm temporarily calmed nerves over the overheated AI rally. The news injected fresh momentum into tech-heavy markets, with South Korea's KOSPI soaring 5.5% and Japan's Nikkei climbing over 2%.
Micron revealed customers had locked in $22 billion in commitments for its memory chips. Qualcomm projected $15 billion in data center sales by 2029. The disclosures arrived as investors fretted about stretched valuations in artificial intelligence stocks, which have driven global equities to record highs.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3%. Futures for the S&P 500 added 0.5%, while Nasdaq futures jumped 1.8%. The rally offered a stark contrast to recent volatile sessions marked by profit-taking in the AI sector.
"Tech stocks received a massively needed shot in the arm after the bell when Micron delivered its earnings report," said Tony Sycamore, market analyst at IG. He cautioned that broader positioning data suggested cooling momentum could challenge tech in the near term.
Analysts remain divided on the rally's durability. Nick Twidale, chief market strategist at ATFX Global in Sydney, acknowledged the immediate boost. "It's a positive from Micron," he said. "But I'm not sure how long the euphoria will last across the rest of the sector... I think valuation concerns will continue to weigh on sentiment moving forward."
Valuation Jitters Persist Beneath the Surface
The AI sector's breathtaking rise has left many stocks trading at multiples that skeptics call unsustainable. Even as Micron's order book impressed, the underlying anxiety didn't vanish. Twidale's warning reflects a broader unease that the rally's foundation may be fragile.
Investors are parsing every data point for signs of a pullback. The fear is that any slowdown in AI spending could trigger a sharp correction. For now, the earnings beats have bought time, but the debate over whether AI can justify its price tags remains unresolved.
Oil Slump and Yen Weakness Add Macro Wrinkles
Oil prices extended their decline as tankers exited the Strait of Hormuz following an initial accord to end the U.S.-Israeli war with Iran. Brent crude dipped 0.5% to $73.34 a barrel, while U.S. West Texas Intermediate fell 0.38% to $70.07. Easing supply fears could relieve some inflation pressure.
Yet elevated prices still keep the U.S. Federal Reserve on edge. Markets are pricing in at least one rate hike this year, with Thursday's PCE inflation report expected to show core prices rose 0.3% in May, putting the annual rate at 3.4%. Headline inflation is forecast at 0.5% for the month and 4.1% year-over-year.
The rate-hike expectations have boosted the dollar, pushing the Japanese yen to 161.73 per U.S. dollar, near its lowest in 40 years. A break below 161.96 would take the yen to its weakest since 1986. The dollar index stood at 101.6, its highest since May 12, 2025.
The strong dollar hammered gold, which slid below $4,000 an ounce for the first time in 2026. Spot gold last fetched $3,990, hovering near its lowest since November.
