US Stock Market Preview: Futures Rise, AI Chip Leaders Gain, Strong Performance from Kioxia.

US Stock Futures Rise Ahead of Market Open

As of Thursday morning, US stock futures are collectively up, with the Dow futures rising by 0.3%, Nasdaq futures by 0.35%, and S&P 500 futures by 0.36%.

Tech Stocks Performance

Most major tech stocks are showing gains before the market opens.

• Micron Technology (MU) is up over 3%.
• Taiwan Semiconductor Manufacturing Company (TSM) and Nvidia (NVDA) have both increased by over 1%.
• Advanced Micro Devices (AMD) also sees a rise of more than 1%.

Mixed Results for Chinese Stocks

Chinese stocks are experiencing mixed results in pre-market trading:

• Trip.com (TCOM) is down over 5%.
• JD.com (JD) has dropped more than 1%.
• ASE Technology Holding Co. (ASX) is up over 3%.

AI Application Stocks Fluctuate

AI application stocks are showing varied performance:

• Fastly (FSLY) surged over 46% after reporting Q4 revenue of $172.6 million, exceeding market expectations.
• Shopify (SHOP) is up more than 1%.
• AppLovin (APP) fell nearly 7% post-earnings, while HubSpot (HUBS) rose over 4%.

Storage Sector Gains

The storage sector is experiencing a collective surge due to multiple positive news:

• OpenAI, Samsung Electronics, and SK Hynix are preparing to launch a data center in South Korea in March.
• Samsung has begun mass production of the industry's first HBM4 chips.
• Micron's CFO announced that their HBM4 has entered mass production.

• SanDisk (SNDK) is up over 6%.
• Micron (MU) and Western Digital (WDC) have both increased by over 3%.

Google Introduces AI Shopping Features

Google (GOOG) is adding AI shopping capabilities to its search engine and Gemini chatbot, allowing users to purchase products directly. This initiative aims to monetize AI usage more effectively.

Waymo's Robotaxi Expansion

Waymo, a subsidiary of Google (GOOGL), aims to achieve over 1 million paid robotaxi rides weekly in the US by the end of 2026, marking a significant step in autonomous driving commercialization.

Meta's AI Data Center Investment

Meta has announced a $10 billion investment in a new AI data center in Lebanon, Indiana, which will be its largest single investment in AI infrastructure to date.

Earnings Reports and Market Reactions

• McDonald's (MCD) reported Q4 revenue of $7.01 billion, exceeding expectations, driven by a low-price strategy.
• Oracle (ORCL) is up nearly 1% as Bernstein's analysis shows a clear safety margin even under extreme stress scenarios.

Other Notable Movements

• Cisco (CSCO) is down over 7% despite raising its annual guidance due to a decline in gross margin expectations.
• SoftBank Group (9984.JP) reported a 253% increase in net profit for the first three fiscal quarters, largely due to its investment in OpenAI.

• Albemarle (ALB) fell over 2% after reporting a net loss in Q4.

Conclusion

The pre-market trading indicates a positive sentiment in the tech sector, with significant movements in AI and storage stocks, while some companies face challenges in earnings and market expectations.