Micron Seen Fueling One-Third of S&P 500 EPS Growth as Shares Jump 19%
MU•Goldman Sachs forecasts AI spending will drive half of S&P 500 EPS growth in 2026–27, with Nvidia and Micron together expected to contribute roughly one-third of this year's index earnings growth. Micron shares surged 19.3% to $895.88 as record call trading at $900–$1,000 strikes ignited a potential gamma squeeze.
1. Goldman AI Earnings Forecast
Goldman Sachs projects artificial intelligence investment to power roughly half of S&P 500 earnings per share growth in both 2026 and 2027. Within that framework, chipmakers lead the gains, with Nvidia and Micron collectively slated to drive about one-third of the index’s EPS expansion this year.
2. Micron Stock Rally and Options Activity
Micron shares closed at $895.88 after a 19.3% gain, jumping further to over $914 in after-hours trading. The frenzy centered on call options at the $900, $950 and $1,000 strikes, where dealers’ hedging requirements could create a self-reinforcing gamma squeeze.
3. Potential Outlook and Risks
While AI infrastructure demand boosts Micron’s revenue outlook, rising depreciation expenses at large cloud providers may damp future profitability. Traders will monitor ongoing call option volumes and hyperscaler capital expenditures to gauge whether current momentum can be sustained.
