Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market moves : The S & P 500 was making a comeback Thursday following four straight sessions of declines. Technology rebounded from recent losses after Micron signaled that strong demand for its AI memory chips will continue. Micron shares surged more than 12%. However, the AI trade was not carrying Thursday's market. What was actually wo ...

Core Insights - Micron's stock surged significantly following a strong earnings report, driven by tighter supply in the memory market [1] - The company’s advanced memory production for AI is sold out through 2026, with memory pricing increasing by 20% quarter-over-quarter and storage chips rising in the mid-teens [2] - Micron's CFO anticipates continued improvement in margins and performance through fiscal 2026, although pricing increases are expected to slow after February [2] Industry Impact - The rising memory costs are affecting major hyperscalers like Amazon, Microsoft, and Google, which need these chips for AI data centers, leading to higher operational costs [4] - Server manufacturers such as Dell, Lenovo, and HPE are passing on increased costs to consumers, with HPE raising server prices by 15% and Dell expected to increase prices by 15-20% [4][5] - Broadcom is also experiencing margin compression due to rising memory costs, contributing to an 11% decline in their stock post-earnings [5]

Core Viewpoint - U.S. chipmaker Micron Technology plans to invest 1.5 trillion yen ($9.6 billion) in a next-generation memory manufacturing facility in western Japan to enhance support for artificial intelligence computing [1] Investment Details - The investment amount is 1.5 trillion yen, equivalent to $9.6 billion [1] - The facility will focus on next-generation memory technology [1] Strategic Importance - The new manufacturing facility aims to support the growing demand for artificial intelligence computing [1] - This move indicates Micron's commitment to expanding its capabilities in the AI sector [1]

Core Viewpoint - Technology stocks, particularly Palantir, Micron Technology, and Advanced Micro Devices (AMD), are experiencing significant gains due to the end of the government shutdown and strong earnings reports, recovering from a recent downturn in the AI sector [3][4][6]. Group 1: Palantir Technologies - Palantir's stock surged 8% to above $190 after a drop to $168 during last week's sell-off, indicating a recovery as investors respond positively to the stock's rebound [5][6]. - The company reported strong Q3 earnings, surpassing estimates and raising its full-year outlook, driven by growth in its commercial sector and increased adoption of its AI platform [7]. - Analysts, including Bank of America, have issued bullish reports, raising Palantir's price target to $255, suggesting a potential upside of approximately 34% [7]. Group 2: Micron Technology - Micron's stock rose 6.3% following better-than-expected quarterly results, attributed to strong demand for AI memory chips, prompting the company to raise its outlook [8][9]. - The stock had previously fallen to $217 during the sell-off but has now recovered above $250, indicating positive momentum as it aims for new all-time highs [8]. - Analysts have upgraded Micron's rating from "hold" to "buy," with Citigroup setting a price target of $275, suggesting a 9% upside potential [9]. Group 3: Advanced Micro Devices (AMD) - AMD's stock increased by 5%, recovering from a low of $224 during the AI-related sell-off, now trading above $240 [10][11]. - Despite a mixed quarterly earnings report, which disappointed some investors regarding gross margin outlook, AMD is benefiting from renewed interest in AI stocks [11]. - Piper Sandler has raised AMD's price target from $240 to $280, reflecting a bullish outlook for the stock [11].