Quick Summary
- Semiconductor stocks stage a comeback Wednesday following Tuesday’s significant downturn
- Micron (MU) stock gains momentum before releasing fiscal third-quarter earnings after market close
- Qualcomm shares climb on news of potential chip supply deal with ByteDance
- Cerebras stock tumbles 11% as margin compression overshadows otherwise impressive quarterly performance
- FedEx (FDX) stock plunges more than 6% following disappointing full-year earnings guidance
Wednesday, June 24, brought a tentatively optimistic tone to Wall Street’s trading session as market participants attempted to bounce back from the previous day’s technology-driven selloff.
Nasdaq 100 index futures advanced 0.5% during early morning hours, with investors showing renewed interest in artificial intelligence-related stocks that experienced severe pressure on Tuesday.
Semiconductor Sector Stages Recovery
Micron Technology shares jumped 3.7% during premarket hours as traders positioned ahead of the company’s fiscal third-quarter financial results, scheduled for release after Wednesday’s closing bell. Market watchers anticipate these figures will provide crucial insights into the sustainability of AI-driven chip demand.
Qualcomm stock increased 2.3% following a Reuters report indicating ongoing negotiations with ByteDance regarding custom chip manufacturing. The potential partnership would make Qualcomm a supplier to TikTok’s parent organization. Qualcomm has not issued a statement regarding the matter.
Advanced Micro Devices shares rose 1.3%, while Intel stock moved up 1.5%, and Super Micro Computer gained 1.8%, all participating in the broader artificial intelligence sector rebound.
KB Home stock surged 4% after the residential construction company delivered second-quarter revenue figures exceeding Wall Street projections. Management maintained its full-year forecast aligned with analyst consensus, noting that 73% of net customer orders originated from its build-to-order business model.
ICON, which provides clinical research services, jumped 6% after announcing first-quarter performance that surpassed expectations. The company posted adjusted earnings of $2.50 per share, generated $2.03 billion in revenue, and reported a backlog expansion to $22.7 billion.
Cerebras and FedEx Face Selling Pressure
Cerebras Systems stock declined approximately 11% despite delivering robust first-quarter financial results. The AI chip manufacturer reported year-over-year revenue growth of 94% to $193.4 million, while posting a per-share loss that was smaller than analyst projections.
Investor sentiment turned negative on the company’s second-quarter gross margin forecast of 36% to 38%, representing a significant decline from the 47% margin achieved in the first quarter. This margin contraction became the primary concern for shareholders, eclipsing positive developments including a major OpenAI contract valued at over $20 billion and a newly announced AWS collaboration.
Cerebras provided full-year revenue guidance ranging from $855 million to $865 million, representing approximately 69% growth at the midpoint of the range.
FedEx stock plummeted over 6% after fourth-quarter results did little to reassure concerned investors. The logistics giant reported year-over-year revenue growth of 13% to $25 billion, with adjusted earnings per share of $6.31 exceeding analyst estimates.
The disappointment centered on forward guidance. FedEx projected fiscal 2026 earnings per share between $16.90 and $18.10, with the midpoint trailing Wall Street consensus expectations.
This marked the company’s initial earnings announcement following the completion of its freight division spin-off earlier in June.
Wendy’s stock skyrocketed 26% after social media activity on Reddit’s WallStreetBets forum encouraged users to purchase shares of the quick-service restaurant chain. This activity mirrors previous retail investor-driven stock momentum events.
