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Micron Reports After the Bell: Can the AI Memory Boom Keep Beating a Very High Bar?

Wall Street is heading into the close on Wednesday with two things on its mind: the Fed's favorite inflation gauge and Micron Technology. According to Bloomberg, US stocks paused ahead of both, with the inflation data key for interest rates and Micron's report key for the AI trade. Micron reports fiscal fourth-quarter results after the closing bell, and a big move in either direction could ripple into Asian chip stocks when markets open in the morning. The Numbers, Verified Across Sources What Micron guided (SEC filing): For the quarter ending in August, Micron told investors to expect revenue of $50 billion, give or take $1 billion, non-GAAP earnings of $31 per share, give or take $1, and a gross margin of about 86%. What analysts expect (Alphastreet, 33 analysts): Consensus sits at $31.56 per share on $51.20 billion in revenue, slightly above the top half of Micron's own guidance range. Estimates are wide, running from $28.04 to $37.44 per share for earnings and from...
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Why Rising Bond Yields Are Making the AI Boom More Expensive

Last week's surge in Treasury yields has mostly been discussed in terms of mortgages and Fed policy. A CNBC report published Sunday points to another place it's being felt: the companies borrowing heavily to build AI data centers.

What Yields Did Last Week

According to CNBC, the 10-year Treasury yield briefly reached 5.23% last week, its highest since June 2007. The 30-year yield touched 5.53%, and the 2-year topped 4.90% at one point. Edward Jones separately noted that the 10-year yield rose more than 0.4 percentage points in September, reaching its highest level since 2007.

Why This Matters for AI

Data center building beside a rising Treasury yield chart showing higher borrowing costs for AI companies

Much of the AI infrastructure buildout is funded with borrowed money. CNBC cited JPMorgan's June estimate that $4.1 trillion in AI-related debt will be issued through 2030, as data center companies race to add capacity. CNBC's read is that the buildout isn't slowing, but higher yields make it more expensive.

A concrete example: CNBC reports that SoftBank, a major provider of capital for AI projects, raised $11.1 billion in a junk-bond sale last week, with yields as high as 9.75% on the 7-year portion. CNBC adds that companies have so far been willing to absorb the higher costs, but some investors are starting to worry about future financings.

Metric Figure Source
10-year Treasury yield, last week's peak 5.23% (highest since June 2007) CNBC
30-year Treasury yield, last week's peak 5.53% CNBC
2-year yield, topped 4.90% CNBC
JPMorgan estimate: AI-related debt through 2030 $4.1 trillion CNBC (JPMorgan, June)
SoftBank junk-bond sale $11.1 billion, up to 9.75% (7-year) CNBC
Microsoft, Friday About +3.7% Trading Economics

Tech Stocks Held Up

Despite the yield spike, a CNBC headline from Saturday noted that Meta and Microsoft led tech stocks higher last week. Trading Economics reported that Microsoft gained about 3.7% on Friday after announcing plans to merge its consumer and workplace Copilot assistants into one product for corporate customers.

What This Means for Investors

"Tech" isn't one block. Companies that fund growth from their own cash flow and companies that depend on new borrowing feel higher rates differently. That's a general principle, not a call on any stock. If you hold a broad Nasdaq or tech fund, you own both kinds, so it's worth checking how much debt the largest holdings carry.

What to Watch Next

Micron reports earnings on Wednesday, September 30, according to Schwab's calendar, a useful read on AI-related chip demand. The September jobs report follows on Friday, October 2.


This post is for general informational purposes and isn't personalized investment advice. Please consult a licensed financial advisor before making investment decisions.

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