Wednesday was one of those days where the market decided it had strong opinions about technology stocks, and those opinions weren't particularly positive. Investors spent the day offloading tech and AI-related positions in what became a sector-wide retreat. The Nasdaq slid 1.8% to close at 22,693.32, while the Dow Jones Industrial Average dipped nearly 0.5% to 47,885.97. The S&P 500 finished down 1.16% at 6,721.43.
But amid the broader selloff, five stocks managed to grab the spotlight for various reasons ranging from earnings surprises to IPO fireworks to partnership drama. Here's what retail traders and investors were watching.
Micron Technology: Earnings Beat Sparks After-Hours Rally
Micron Technology Inc. (MU) shares fell 2.93% during regular trading to close at $225.71, bouncing between an intraday high of $237.45 and a low of $221.69. The stock trades in a 52-week range of $61.54 to $264.75. But the real action happened after the closing bell, when shares shot up nearly 8% to $243.74.
The semiconductor company reported first-quarter earnings that crushed analyst expectations. Revenue came in at $13.64 billion, beating estimates of $12.83 billion. Adjusted earnings per share hit $4.78, well above the expected $3.95. The strong performance was fueled by a 20.5% year-over-year revenue increase and robust operating cash flow, which apparently gave investors enough reason to look past the day's tech pessimism.
Medline: IPO Surge Delivers Biggest Debut Since Rivian
Medline Inc. (MDLN) had quite the introduction to public markets, with shares surging 41.38% to close at $41. The stock traded between $34.92 and $41.25 during its debut session.
Medline is the largest supplier of medical-surgical products and supply chain solutions across all care settings, based on total net sales of med-surg products. Shares opened at $35, well above the $29 IPO price, valuing the company at nearly $37 billion. The Blackstone and Carlyle-backed firm's offering was the biggest IPO since Rivian went public in November 2021, which is saying something given how quiet the IPO market has been lately.
Oracle: Data Center Deal Falls Through
Oracle Corp. (ORCL) dropped 5.40% to $178.46, with the stock moving between a high of $186.50 and a low of $177.07. The 52-week range sits between $118.86 and $345.72.
The decline followed reports that Blue Owl Capital, Oracle's major data center partner, has withdrawn from a $10 billion deal for a new data center. This development has intensified concerns over Oracle's mounting debt and AI spending at a time when investors are already skittish about tech infrastructure investments. The company is now reportedly seeking a new partner to replace Blue Owl in the planned facility, which is never the position you want to be in.
ASML Holding: CEO Remains Confident Despite Selloff
ASML Holding (ASML) shares fell 5.63% to close at $1,015.43. The stock's intraday high was $1,065.12, with a low of $1,010.01, and a 52-week range of $578.51 to $1,141.61. In after-hours trading, the stock recovered slightly, rising 1.08% to $1,026.35.
Despite the decline, ASML's CEO Christophe Fouquet expressed confidence in the company's focus on extreme ultraviolet (EUV) lithography and its long-term AI demand. The CEO emphasized the importance of resolution, accuracy, and productivity as chipmakers develop more powerful AI chips. It's the kind of long-term thinking that sounds reassuring when your stock is getting hammered in the short term.
Arm Holdings: China's Chip Progress Rattles Investors
Arm Holdings Plc (ARM) saw a 5.38% decline, closing at $114.58. The stock's high and low for the day were $121.63 and $112.63, respectively, with a 52-week range of $80 to $183.16.
The drop comes amid reports of China developing a prototype EUV lithography machine, a critical technology for manufacturing advanced semiconductor chips. This development could potentially challenge Western dominance in AI chip production, which is the kind of headline that makes semiconductor investors nervous about their thesis.
According to market data, Micron Technology stock has a Value ranking in the 46th percentile compared to other chip stocks, suggesting it's trading near the middle of the pack on valuation metrics within its sector.
