MU Earnings Boost Tech, NVDA & AVGO in BofA's 2026 A.I. Picks

Market Overview - Futures are showing strength, but there has been volatility with a potential head fake in the market [1][2] - The tech sector is experiencing a boost following Micron's earnings report, with expectations of better-than-expected inflation numbers [2][3] - The NASDAQ 100 is facing some pullback, but there are signs of a potential bullish pattern forming [3] Micron Earnings Report - Micron reported revenue of $13.64 billion, exceeding the street's expectation of $12.72 billion, marking a 52% year-over-year increase [8][9] - Adjusted earnings per share came in at $4.78, surpassing the expected $3.91, with guidance for Q2 adjusted earnings per share set at $842 [9][10] - Micron is only able to meet 50% to 67% of the current demand, indicating strong demand and pricing power in the high bandwidth memory chip market [11][12] AI Sector Insights - Bank of America remains optimistic about the AI trade extending into 2026, with Nvidia highlighted as a key player in the GPU space [15][16] - Broadcom and Lamb Research are also noted as significant contributors to the semiconductor and AI markets, with expectations of growth in demand [17][19] - The overall sentiment in the AI industry remains positive, with expectations for continued growth and investor enthusiasm [20] Other Company Earnings - Dart reported mixed results, with adjusted earnings per share missing expectations at $28 compared to the anticipated $29, but quarterly sales slightly beat expectations at $3.07 billion [22][23] - Key restaurant brands like Olive Garden and Longhorn Steakhouse showed year-over-year sales growth of 4.7% and 5.9%, respectively, indicating resilience in consumer demand despite input cost inflation [23][24] Market Volatility and Outlook - The VIX is elevated at over 17, indicating heightened market volatility, with upcoming quarterly options expiration expected to increase market volume [4][6] - Resistance levels for the S&P 500 are identified at 6,800, with downside support at 6,650, suggesting ongoing hedging activity [26]