Micron drives global rally tech stock rally as traders abandon their fear of an AI bubble

Good morning. On Fortune’s radar today:

Markets: Micron drives tech stock rally.

Big-name money managers are piling into Amazon.

Oil is nearly normal.

J.P. Morgan warns “flash-crash” may be coming.

Denver’s reduced enthusiasm for eating out.

Reid Hoffman rips into Elon Musk.

It’s an open secret: Amazon is the favored stock of star money managers

In recent quarters, a roster of money managers including David Tepper‘s Appaloosa Management, Seth Klarman’s Baupost Group, Al Gore’s Generation Investment Management, and Sanders Capital have been enlarging their stakes in the $2.5 trillion tech-and-retail giant. In Klarman and Tepper’s cases, the stock has become their single largest holding. Bill Ackman-led Pershing Square began amassing an Amazon stake from scratch about a year ago, and Pershing Square now counts Amazon as its second-largest position at about $2.4 billion. Global investment manager Sanders Capital, founded by former AllianceBernstein CEO Lewis Sanders, doubled its Amazon stake in the first quarter of 2026 to 29.8 million shares worth about $6.2 billion, making the stock its third-largest holding behind Taiwan Semiconductor and Alphabet, Fortune’s Amanda Gerut reports.

The reason? They smell value. While stock in nearly every other company with a claim on the AI boom has soared during the past 12 months—with Nvidia up 35%, Intel up 496%, and Micron Technology up 719%—Amazon’s stock gains have been relatively meager and haven’t yet caught up to the business results. Year-to-date, Amazon’s stock is up 3.4% and 10.1% for the past 12 months.

It’s not a bubble: Micron’s blockbuster earnings defy expectations; J.P. Morgan says AI capex is “remarkably profitable”

U.S. stock futures were strongly up before the opening bell in New York after computer memory chip maker Micron reported earnings that blew past analysts’ expectations. The company’s revenue was $50 billion, well above estimates of $43.2 billion. Notably, Micron raised its capex guidance again to above $25 billion. Jefferies analysts Masahiro Nakanomyo and Hisako Furusumi noted that it was the third capex guidance increase in a row: “Capex outlook was raised from $18.0bn ( 30%) at the beginning of the fiscal year to $20.bn at 1Q, and then to $25.0bn at 2Q ( 81% YoY).”

Micron stock rose 16% in overnight trading, leading a rally in tech stocks generally. Nasdaq futures were up 2.35% this morning and S&P 500 futures were up 0.82%.

That set the stage for a global rally in equities today: Markets in Europe and Asia were up across the board........

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