Micron Joins S&P 100, Triggers $29.4 B ETF Inflows After 56.6% Revenue Surge
Micron Technology generated $13.64 billion in revenue last quarter, up 56.6% year-over-year, with its Cloud Memory unit delivering $5.28 billion at a 66% gross margin. It was added to the S&P 100 index alongside Lam Research, Applied Materials and GE Vernova, prompting automatic purchases by the $29.4 billion iShares S&P 100 ETF.
1. S&P 100 Rebalancing and Inclusion
The S&P 100 underwent its quarterly rebalancing on March 6, adding Micron Technology, Lam Research, Applied Materials and GE Vernova while removing PayPal, MetLife, AIG and Target. This shift highlights the growing emphasis on AI infrastructure within America’s largest companies.
2. Forced ETF Purchases by iShares S&P 100 ETF
Inclusion in the S&P 100 index mandates that every fund tracking it execute price-insensitive purchases. The iShares S&P 100 ETF, with $29.4 billion in assets, must now allocate holdings to Micron, creating a direct demand surge.
3. Micron's Recent Financial Performance
In its latest quarter, Micron reported $13.64 billion in revenue, a 56.6% year-over-year increase, driven by a $5.28 billion Cloud Memory unit operating at a 66% gross margin. The stock has rallied 316% over the past year despite a 10.2% pullback this week.