AI Memory in Market Driver's Seat as MU Taps $1T

Kevin Green, senior markets correspondent, is bullish on the market, driven by AI-related memory chip demand (Micron, Western Digital) and passive rebalancing in June. He sees the market making higher highs and higher lows, with the Iran conflict shrugged off. He notes a structural shortage in DRAM and high-bandwidth memory, fueling the tech rally. He also discusses Zscaler's 25% drop due to guidance concerns and potential market share loss.

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Charles Schwab 7.8
Asset Manager $890.00B
Kevin Green 7.0

AI Memory in Market Driver's Seat as MU Taps $1T

MU

Micron → 1625

ndx

The market has officially shrugged off the Iran conflict... continuing to make higher highs and higher lows... memory names continue to move higher... that trend trade usually does kind of coincide with risk on.

31 calls

+0

no reliable edge (random outcomes)

5/20/2026 9:00:35 PM	short term up	5 days later	+2.19%	+2.19%
5/14/2026 3:30:29 PM	short term up	5 days later	+0.59%	+0.59%
3/17/2026 1:00:03 AM	short term up	5 days later	-0.97%	-0.97%
3/13/2026 1:00:26 AM	short term down	7 days later	-1.89%	+1.89%
3/10/2026 1:00:27 AM	short term up	5 days later	-1.24%	-1.24%
3/9/2026 3:30:01 PM	short term up	6 days later	-1.21%	-1.21%
3/3/2026 7:15:05 PM	short term down	5 days later	-0.50%	+0.50%
2/18/2026 5:01:08 PM	short term cautious down	5 days later	+0.72%	-0.36%
2/5/2026 2:00:23 AM	short term down	5 days later	+0.50%	-0.50%
2/4/2026 2:00:00 AM	short term down	5 days later	+2.36%	-2.36%
1/27/2026 2:00:35 AM	short term up	5 days later	-1.09%	-1.09%
11/20/2025 7:30:15 PM	short term up	5 days later	+4.11%	+4.11%
11/18/2025 6:00:07 PM	short term down	5 days later	+0.95%	-0.95%
11/7/2025 3:01:02 AM	medium term up	21 days later	-1.05%	-1.05%
11/5/2025 8:18:35 PM	short term cautious up	5 days later	+1.61%	+0.80%
11/3/2025 6:30:01 PM	short term cautious up	6 days later	+0.69%	+0.35%
11/1/2025 1:00:33 AM	short term up	7 days later	-1.39%	-1.39%
10/27/2025 5:01:01 PM	short term up	6 days later	-0.15%	-0.15%
10/23/2025 3:00:52 AM	short term cautious up	5 days later	+3.00%	+1.50%
10/8/2025 1:00:07 AM	short term cautious down	5 days later	-2.07%	+1.03%
10/1/2025 5:00:02 PM	short term up	5 days later	-0.21%	-0.21%
9/13/2025 1:29:51 AM	short term up	7 days later	+1.92%	+1.92%
8/11/2025 5:30:31 PM	short term up	6 days later	-0.53%	-0.53%

Show all 23 ndx results

rut

The guest mentions passive rebalancing in June could fuel the market and impact smaller stocks in the S&P 500, implying potential upside for small caps, but the focus is on tech and memory names, not explicitly small caps.

Introduces Kevin Green to discuss the market action, noting record highs and asking for his take.

Diane
Kevin Green

The market is bullish, driven by information technology and industrials exposed to AI (GE Vernova, Caterpillar). The market has shrugged off the Iran conflict, with VIX around 17, indicating a good environment for traders. Memory names like Micron and Western Digital are leading the risk-on trend. Passive rebalancing in June could fuel further upside.

The combination of tech and industrials, along with communication services holding up, supports higher highs and higher lows. The VIX premium allows for both long and short premium strategies.
Asks about Micron's huge move after an analyst call, requesting details on the analyst's take.

Diane
Kevin Green

Micron is up 35-40% after UBS raised its price target to $1,625 from $535, citing long-term agreements, structural DRAM shortage, and demand from data centers for high-bandwidth memory. The target is a catch-up but justified by fundamentals.

The analyst believes free cash flow and revenue growth can be foreseen until 2029 due to long-term agreements. The structural shortage gives Micron pricing power.
Asks about the broad move in the chip sector, noting FOMO and Nvidia's pre-market rise.

Diane
Kevin Green

Traders are focused on high-demand, short-supply items: CPUs, high-bandwidth memory, and hard disk drives for data center buildout. This is a structural shortage. Micron is only 3.25% away from overtaking Berkshire Hathaway. Nvidia's rally could be long-lasting, similar to its past run.

The AI trade may be long in the tooth or just starting, but given lower float in Micron and passive rebalancing, it's hard to fade. Nvidia's investment in Taiwan ($150B/year) and new headquarters fuel the rally.
Asks about Zscaler's heavy pressure after quarterly results.

Diane
Kevin Green

Zscaler is down 25% pre-market. Revenue beat ($850.5M vs $835.6M), but guidance was weak ($887M vs higher expectations). Operating margin hit 23% (all-time high), but rising expenses and CapEx are impacting free cash flow. Concern about losing market share to Palo Alto Networks or CrowdStrike.

The market is concerned because spending more without top-line growth is unsustainable. The aggressive pre-market drop may see buyers step in after the first hour.
Asks for Kevin's outlook on the S&P 500, targets, and flows.

Diane
Kevin Green

Key levels: downside at 7480 (top traded contracts are puts, suggesting minor pullback positioning), upside at 7570. The memory trade is driving the market, and with industrials joining the AI theme, it's hard to short until a major inflection point.

The market is making higher highs and higher lows. Geopolitical risk is present but not affecting the trend.
Concludes that AI is back in the driver's seat, thanking Kevin Green.

Diane

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