Micron Technology’s (MU) fiscal Q3 report sparked a 12.32% intraday gain to $1,177.73, with Global X’s Seana Smith calling it a “vindication” of the demand side of the story. However, some analysts are shifting focus to defense spending and space programs. CEO Sanjay Mehrotra guided Q4 revenue to $50 billion and 86% gross margin, fueling hopes for further growth. Meanwhile, Lockheed Martin’s (LMT) lagging performance has raised questions about its ability to keep pace with the AI memory bull case.
The market’s attention is now turning to defense spending, with a 42% increase in FY2027 budget requests and $18 billion allocated to operationalize Golden Dome. Rocket Lab’s selection for the Space Based Interceptor under Golden Dome is also gaining traction. However, some analysts predict rate cuts are on the horizon, which could impact Micron’s rally.
As the market adjusts to these new developments, investors should consider alternative positions with more favorable valuations and growth prospects.
Source: https://247wallst.com/investing/2026/06/25/microns-blowout-sparked-a-chip-rally-but-the-smart-money-is-already-rotating-into-defense-and-space