Micron Tops $1T, Nasdaq Hits Record High

Market Overview

Micron surged 19.3%, pushing its market capitalization above $1 trillion for the first time and marking its largest single-day gain since 2011. The S&P 500 and Nasdaq Composite both closed at record highs, while the semiconductor sector extended its winning streak to five consecutive sessions. The Nasdaq-100 broke above the 30,000-point milestone. Meanwhile, the U.S. 10-year Treasury yield fell 7 basis points to 4.49%, and the 30-year yield slipped below 5%. Despite escalating tensions between the United States and Iran, Brent crude oil climbed 3.58% to $99.58 per barrel.

■ Micron Surpasses $1 Trillion Valuation as Semiconductor Stocks Rally for a Fifth Straight Day

Micron shares soared 19.3%, delivering their strongest one-day performance since 2011 and lifting the company's market capitalization above $1 trillion for the first time. UBS sharply raised its price target on Micron from $535 to $1,625, implying nearly threefold upside. The Nasdaq-100 surpassed the 30,000 level, while semiconductor stocks advanced for a fifth consecutive session. Improving industry fundamentals and continued capital expenditure growth have reinforced bullish sentiment, driving both the S&P 500 and Nasdaq Composite to fresh record highs. In contrast, the Dow Jones Industrial Average declined 0.23%, highlighting the market's concentration in technology and AI-related names.

■ U.S.-Iran Tensions Escalate as Brent Crude Gains 3.6%

Iran reportedly shot down a U.S. military drone, intensifying both military and diplomatic confrontations. Brent crude surged 3.58% to $99.58 per barrel, while WTI crude settled 2.81% lower at $93.89 per barrel. The potential release of $24 billion in frozen Iranian assets remains a central issue in negotiations. Analysts believe Washington's strategy is to combine military pressure with diplomatic engagement while seeking greater influence over the Strait of Hormuz. As a result, oil market volatility has increased significantly.

■ China's Margin Financing Balance Exceeds RMB 2.9 Trillion

China's margin financing balance surpassed RMB 2.9 trillion for the first time on record, with the electronics sector attracting the largest share of leveraged capital. Investors continue increasing exposure to technology-related industries. Huawei's recently discussed “Tao Principle” has been described by market participants as a potential “DeepSeek moment” for China's domestic semiconductor industry. Meanwhile, Xiaomi reported stronger-than-expected first-quarter revenue of RMB 99.1 billion and announced a HK$20 billion share repurchase program. The Shanghai Composite Index edged down 0.17%, while Hong Kong's Hang Seng Index gained more than 1%, supported by policy-driven and next-generation hardware themes.

■ Musk Unveils Grok 5 With 1.5 Trillion Parameters

Elon Musk revealed that the Grok 5 AI model will feature 1.5 trillion parameters, positioning it as a direct competitor to GPT-5 and Gemini Omni. The next phase of the frontier AI arms race is rapidly taking shape. Separately, tensions have emerged between the Pentagon and SpaceX after Starlink service fees reportedly increased fivefold, adding pressure to defense-related contract negotiations. Intel also announced plans to transform its New Mexico facility into the world's first mass-production site for glass substrate technology, signaling further advancements in advanced packaging and semiconductor supply chains.

Market Focus● Semiconductor Momentum Accelerates

Micron's 19.3% surge, its breakthrough $1 trillion valuation, and UBS's target price increase to $1,625 represent one of the strongest signals yet in the current AI and memory-cycle expansion. Combined with the Nasdaq-100's move above 30,000 and the semiconductor sector's five-day rally, the market narrative is shifting from concerns over concentration risk toward confidence in fundamentally supported growth. Earnings reports from NVIDIA, AMD, and Xiaomi this week will provide key insight into the sustainability of AI-driven demand.

● U.S.-Iran Negotiations Remain in Focus

Three key themes continue to dominate the outlook: oil price volatility, the proposed release of $24 billion in frozen assets, and strategic control of the Strait of Hormuz. The widening spread between Brent and WTI crude, together with the U.S. Dollar Index holding near 99, suggests that markets have partially priced in the possibility of an agreement while maintaining a geopolitical risk premium. Details of any future memorandum or framework agreement will likely determine the next major move in energy markets.

Key Events to Watch

• China releases April Industrial Profits Data for Large-Scale Enterprises

• Bank of Japan Governor Kazuo Ueda delivers remarks

• ChangXin Technology's STAR Market IPO review meeting

• PDD Holdings reports latest quarterly earnings

• Meta's 2026 Annual Shareholders Meeting

• Ongoing monitoring of U.S.-Iran frozen asset release arrangements