Chipmaker Strength Fuels Nasdaq 100 Rebound

A surprisingly robust quarterly report from Micron Technology has injected optimism into the technology sector, helping the Nasdaq 100 stage a recovery following Wednesday's sharp sell-off. The memory chipmaker's performance and outlook have sparked a rally across semiconductor stocks, though market participants remain cautious about whether this marks a sustainable reversal or merely a short-term bounce.

The focal point of Thursday's pre-market sentiment shift is Micron Technology. The company reported earnings of $4.78 per share, significantly surpassing analyst estimates of $3.94. More critically, management provided forward guidance that resonated strongly with investors: its production capacity for High Bandwidth Memory (HBM)—a crucial component for artificial intelligence applications—is fully booked for all of 2025 and much of 2026.

This outlook has served to alleviate recent market concerns about a potential slowdown in AI-related investment. In pre-market trading, Micron shares advanced by more than 7%.

Broad-Based Semiconductor Rally

The positive implications of Micron's report have generated a wave of buying interest across the chip sector. Market experts view the intense demand for memory chips as a clear signal of continued, robust growth in artificial intelligence infrastructure. This has led to a pre-market rebound in other industry heavyweights, including Nvidia and AMD, which are recouping some of Wednesday's losses. Capital that exited the market yesterday is now flowing back specifically into these hardware-focused equities. Conversely, defensive sectors and software names, which held relatively steady in the previous session, are seeing some rotation out of favor as funds shift.

Should investors sell immediately? Or is it worth buying NASDAQ 100?

Technical Landscape and Macroeconomic Crosscurrents

Despite the early recovery, the Nasdaq 100's technical posture remains fragile. The index closed Wednesday near its session low at 24,647.61 points, marking a decline of 1.93%. This level now represents immediate support. On the upside, bulls face the challenge of reclaiming the psychologically significant 25,000-point threshold.

Additional market direction today will come from macroeconomic developments. Investors are keenly awaiting commentary from Federal Reserve Governor Waller, along with the latest weekly jobless claims data. Any signals pointing toward a more restrictive monetary policy stance could temper the enthusiasm generated by Micron's results.

The index's ability to sustain a level above 24,800 points will be crucial for the near-term trend. A closing price above 25,000 would be necessary to neutralize Wednesday's negative chart pattern, while a break below yesterday's low would suggest a potential extension of the correction.