AI Stocks Rally Lifts Nasdaq

On Dec. 19, 2025, AI stocks rallied, lifting the Nasdaq as Micron Technology’s strong fiscal-quarter results and bullish guidance rekindled demand for AI semiconductors, while Nike’s weaker China performance tempered gains in the Dow.

Micron Reignites AI Trade

Micron Technology reported on Dec. 18 that revenue for the fiscal quarter ended in November reached $13.6 billion, with adjusted earnings of $4.78 a share, surpassing Street forecasts of $12.8 billion and $3.95. The stronger-than-expected results renewed investor interest in memory makers and AI infrastructure suppliers.

The company guided the coming quarter to revenue of $18.7 billion and projected earnings per share of $8.42, signaling robust AI memory demand. It also raised fiscal 2026 capital spending to $20 billion from $18 billion and forecast gross margins around 68%, citing tight supply and pricing power. Micron estimated the total addressable market for specialized memory could reach $100 billion by 2028, implying about 40% annual growth. This guidance pushed chip shares broadly higher and was described as one of the largest revenue upside surprises in U.S. semiconductor history outside Nvidia.

Management said supply remains substantially constrained, with demand exceeding available capacity. The company expects to meet only half to two-thirds of demand from several key customers in the medium term.

Nasdaq Leads as Nike Weighs

At 10:05 a.m. ET, the S&P 500 was up 0.8%, the Dow rose 283 points (0.6%), and the Nasdaq gained 1.0%, with the Nasdaq leading gains. Technology stocks focused on AI outperformed, trimming earlier weekly losses. Stocks such as Palantir and Rocket Lab showed renewed momentum with technical breakouts.

Quad-witching—the simultaneous expiration of index futures, index options, stock options, and single-stock futures—amplified intraday swings and elevated volatility. Despite this, flows skewed net risk-on toward large-cap tech and AI beneficiaries, reinforcing semiconductor leadership.

Nike reported fiscal second-quarter results for the period ended Nov. 30, posting profit of $792 million, or $0.53 a share, down from $1.16 billion, or $0.78 a share a year earlier. The company beat analyst estimates of $0.39 a share as sales ticked up slightly, but persistent weakness in China weighed on the Dow’s advance.

Micron’s aggressive guidance and increased capital expenditure underpin a renewed AI infrastructure trade that concentrated flows into semiconductors and helped the Nasdaq outperform. Meanwhile, consumer-facing and China-related headwinds limited broader market breadth.