Hot Inflation Routs Semiconductors; Stalled Iran Talks Lift Oil
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Morning brief: Micron Leads AI Infrastructure Rally; Shopify Tumbles on Loss
The overarching theme this morning is an aggressive capital rotation into the physical layer of AI infrastructure. Micron (MU) continues its explosive run, surging 6.5% after Deutsche Bank hiked its price target to $1,000 citing severe high-bandwidth memory shortages. Applied Digital (APLD) spiked 8.1% following a massive $7.5 billion hyperscaler lease agreement and fresh data center financing, dragging power plays like BE and VRT higher. Nebius (NBIS) is catching a 5.1% bid as buyers front-run tomorrow morning’s earnings report. Conversely, Iris Energy (IREN) plunged 9.9% after upsizing a $2.6 billion convertible debt offering, sparking immediate dilution fears that overshadowed recent GPU contracts. Meanwhile, Shopify (SHOP) tumbled 7.2%, reversing recent momentum after a surprise $581 million net loss and weak margin guidance eclipsed strong top-line growth. Watch tomorrow's NBIS print closely to see if the blistering momentum in AI infrastructure can justify these expanding market premiums.
Posture: Aggressive on physical AI infrastructure and memory, but maintaining cash reserves to defend against potential overvaluation and upcoming earnings.
Upcoming earnings
Evening brief: Hot Inflation Routs Semiconductors; Stalled Iran Talks Lift Oil
Hotter-than-expected April inflation and stalled US-Iran peace talks delivered a dual blow today, snapping the broader market's recent winning streak. Sizzling semiconductor stocks bore the brunt of the selloff as rate fears triggered massive profit-taking across your core holdings. High-flying memory players SNDK (-6.17%) and MU (-3.61%) tanked alongside CRWV (-6.06%) and MRVL (-3.71%), dragging down the broader SMH (-2.61%) ETF. The weakness bled into other highly valued names like HOOD (-3.11%) and NBIS (-3.76%), with the latter sliding just hours before its pivotal earnings report tomorrow morning. Conversely, geopolitical friction sent crude oil surging, lifting USO (+4.07%) as investors priced in tighter global supply. Today's semiconductor pullback feels violent, but it represents a necessary mechanical recalibration after SNDK's staggering 3,528% rally over the past year. Watch to see if tomorrow's pre-market earnings can stabilize the tape before higher-for-longer rate panic fully takes hold.
Posture: Defensive. Hot inflation and geopolitical friction are driving a mechanical recalibration in semis. Preserving capital until the tape stabilizes.
Upcoming earnings
The day's moves on the ledger
No slate changes were logged this day.
← Monday, May 11, 2026 · Wednesday, May 13, 2026 → · Archive