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...
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 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 pro...