CNBC Investing Club recapped Thursday's volatile market session driven by Micron's better-than-expected earnings report and Goldman Sachs' initiation of Intel coverage. Micron jumped over 13% after reporting strong quarterly results and guidance, while Apple fell nearly 5% following price increases on MacBook and iPad models to offset rising memory costs. The personal consumption expenditures price index came in largely in line with expectations, pushing the benchmark 10-year Treasury yield lower. The volatility stemmed from investor concerns that surging memory-chip prices would pressure tech companies buying those components, offsetting gains in the memory sector.
Micron Earnings Lift Memory Sector, Pressure Tech Buyers
Micron reported better-than-expected earnings and guidance, lifting peers in the memory-and-storage complex including Sandisk and Western Digital. However, major tech names including Apple, Amazon, Microsoft, Alphabet, and Meta weakened as investors weighed the negative impact of paying higher prices for memory components. Apple raised prices for several MacBook and iPad models to offset rising memory costs, sparking concern about potential demand destruction.
Goldman Sachs Initiates Intel Coverage with Neutral Rating
Goldman Sachs initiated coverage of Intel with a neutral rating and a $150 price target, implying roughly 14% upside from Wednesday's close. Director of Portfolio Analysis Jeff Marks said the report reinforces the Club's long-term investment thesis, highlighting Intel's opportunity to benefit from both the rise of agentic AI and growing demand for U.S.-based chip manufacturing. He pointed to the company's nascent foundry business, particularly its advanced packaging capabilities, as well as the increasing role CPUs are expected to play as AI workloads shift from training to inference. While Goldman favors Nvidia, Broadcom, and AMD among large-cap chipmakers, Jeff noted Intel has outperformed several of those peers in recent weeks. Intel shares fell 2% Thursday.
FedEx Freight Reports First Independent Earnings Thursday Evening
FedEx Freight reports earnings Thursday evening in its first release as a standalone company. The better-than-expected numbers for the three months ended in May were included in former parent FedEx's release on Tuesday night. FedEx Freight became independent on June 1. Jeff said investors should focus less on the headline numbers and more on what management says on the conference call about freight demand and its plans to improve profit margins. Because this is FedEx Freight's first earnings release as a standalone company, Jeff expects some noise around all the moving parts. If that creates a pullback in the stock, the Club would view it as a buying opportunity, just as it did Wednesday with FedEx following its earnings report.
FAQ
Why did Apple stock fall Thursday despite Micron's strong earnings?
Apple fell nearly 5% after raising prices for several MacBook and iPad models to offset rising memory costs. Investors expressed concern that higher product prices could lead to demand destruction, even as memory-chip supplier Micron reported better-than-expected results.
What is Goldman Sachs' price target for Intel stock?
Goldman Sachs initiated coverage of Intel with a neutral rating and a $150 price target, implying roughly 14% upside from Wednesday's close. The firm highlighted Intel's opportunities in agentic AI and U.S.-based chip manufacturing, particularly its foundry business and advanced packaging capabilities.
