TLDR
- Micron gave a strong AI-driven forecast as customer commitments grew to $32 billion.
- The 10-year Treasury yield hit 5.34%, its highest level since 2002.
- Tencent reportedly agreed to a $7 billion deal for AI chip access through Oracle.
- Synopsys signed new agreements with OpenAI and Amazon.
- Bitcoin traded near $84,000 after briefly topping $85,000.
Markets focused on artificial intelligence spending and rising bond yields this week. Several companies posted updates that showed how much money is still flowing into AI infrastructure.
Bitcoin also moved in a narrow range as investors weighed strong demand against higher borrowing costs.
Micron’s AI Demand Keeps Growing
Micron gave one of the strongest updates of the quarter. The company makes memory chips used in AI data centers.
It expects first-quarter revenue near $61.5 billion. That is well above analyst estimates of about $57 billion.
Quarterly revenue more than quadrupled to $54.23 billion. Customer commitments under long-term supply deals rose to $32 billion, up from $22 billion in June.
Remaining performance obligations climbed to around $150 billion. This shows how tight the supply of advanced memory chips has become.
Oracle Lands a Major Deal With Tencent
Oracle reached an agreement with the Chinese technology company Tencent. Tencent is reported to be spending about $7 billion over five years.
The deal gives Tencent access to around 100,000 advanced AI chips. These chips sit in Oracle data centers across Southeast Asia.
U.S. export rules make it hard for Chinese firms to get this hardware directly. This arrangement gives Tencent a way around that limit.
The deal also adds to Oracle’s growing role in AI cloud computing.
Synopsys Signs Deals With Amazon and OpenAI
Synopsys announced two new agreements. The first is with Amazon, worth more than $1 billion over several years.
That deal covers chip design software used for Amazon’s custom processors, including hardware used in AWS.
The second deal is with OpenAI. The two companies are building a tool called GPT-Synopsys. It is meant to help with chip design work using Synopsys software.
Shares of the company moved higher after the announcements.
Bond Yields Rise to a Multi-Decade High
The 10-year Treasury yield briefly touched 5.34 percent this week. That is the highest level since 2002.
Investors have been selling government bonds due to concerns about inflation and government debt. Higher yields raise borrowing costs for companies.
They can also make bonds more attractive compared to stocks, especially higher-priced technology shares. Strong AI earnings have helped offset some of that pressure so far.
Bitcoin Holds Near $84,000
Bitcoin traded between $83,000 and $84,000 this week. It briefly touched $85,500 after a softer inflation report.
The gains faded as Treasury yields stayed high. Citigroup raised its 12-month Bitcoin forecast to $113,000, pointing to stronger ETF demand and improving rules around crypto.
Bitcoin is now caught between strong buying interest and a tough rate environment. Investors are watching whether AI spending and bond yields keep pulling markets in opposite directions heading into October.
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