The global technology market experienced a significant "relief rally" this week as Micron Technology delivered a "rosy" earnings outlook, effectively easing the mounting anxiety surrounding the sustainability of the AI trade. Reported on Bloomberg Technology by Caroline Hyde and the team, including insights from Ed Ludlow’s reporting landscape, the day was defined by a "risk-on" mode where Micron’s 11% surge—its best day since April—lifted the entire semiconductor and digital storage sector. This surge was fueled by Micron’s ability to meet the intense demand for high-bandwidth memory chips, a critical component in the ongoing AI infrastructure buildout. However, analysts on the program noted that investors are becoming increasingly selective; while cash-rich hyperscalers like Amazon and Microsoft are thriving, there is growing scrutiny on companies like Oracle, whose massive "commercial commitment" to AI is fueled by significant debt and leases that stretch across decades.
This "AI exuberance" is also visible in the private markets, where Patrick McGoldrick of J.P. Morgan Private Capital noted that "darling assets" like OpenAI are commanding record valuations, reaching as high as $750 billion. Companies are staying private for an average of 14 years compared to just five years in the late 1990s, leading to a blurring of the lines between public and private investment strategies. The focus remains on core assets with "defensible moats," such as cybersecurity and artificial intelligence, where the efficacy of deployment is currently exceeding the cost. Amidst this financial maneuvering, Amazon is reportedly engaging in "circular deals" to secure equity in OpenAI, ensuring their own chips are used for future cloud computing needs.
The intersection of big tech and the "Final Frontier" provided a dramatic backdrop to the day’s financial news as Blue Origin's NS-37 mission was forced into a cancellation due to high winds at its Texas launch site. The flight was set to be historic, carrying the first person who uses a wheelchair across the Karman line. On Bloomberg Technology, Caroline Hyde and space experts discussed how these suborbital missions are the essential "seed" for Jeff Bezos's 2026 roadmap, which aims to use the massive New Glenn rocket to scale up operations. The year 2026 is projected to be the year of "mass to orbit," enabling the construction of orbital data centers, space stations, and manufacturing facilities that were previously economically unfeasible.
Geopolitical tensions over the semiconductor supply chain remain a primary concern, with James Proud, CEO of Substrate, warning that the U.S. is "underestimating China to our peril". Reports of a working Chinese prototype for advanced lithography equipment suggest that China’s domestic supply chain is advancing faster than many anticipated. Proud argued that the U.S. can no longer rely solely on defensive restrictions; instead, it needs an offensive "leap-ahead" strategy to regain leadership in the equipment required to manufacture the world's most advanced chips. This race for domestic champions is further complicated by a global "brain drain," as top scientists are increasingly moving between Western firms and Chinese domestic projects.
In one of the most unexpected corporate developments, Trump Media agreed to merge with TAE Technologies to create one of the world's first publicly traded nuclear fusion companies. The venture plans to construct its first utility-scale power plant as early as next year, aiming for "first power" by 2031. While the physics of fusion has traditionally been the greatest hurdle, TAE leaders noted that access to capital has become a primary challenge—a problem this merger seeks to solve by tapping into the current market enthusiasm for innovative energy solutions to power the AI era. As the tech cycle continues to unfold, the focus for 2026 is shifting toward commercial benefits and tangible earnings, as investors demand proof that the trillions spent on infrastructure will yield sustainable profits.
