Earnings Recap - July 11, 2026 (Morning)

 ## Overnight Earnings Movers Companies that reported after yesterday's close or before today's open: ### Beats & Positive Reactions **$MU** - Micron Technology reported strong earnings with a notable announcement from CEO Sanjay Mehrotra about a $250 billion investment plan focused on expanding artificial intelligence memory chip development. This aggressive capital deployment underscores confidence in long-term AI-driven demand, supporting the stock's positive momentum. **$MSFT** - Microsoft continues to demonstrate the profit and productivity benefits of AI integration, with recent corporate commentary highlighting stronger-than-expected earnings driven by AI-related revenue streams. This reinforces the narrative of AI as a key earnings driver for tech giants. **$SKHY** - SK Hynix raised $26.5 billion in what is described as the biggest U.S. IPO ever by a foreign company, signaling strong investor appetite for memory chip companies amid ongoing AI fab spending waves. The company’s outlook on a memory shortage lasting into the next decade supports a bullish long-term thesis. ### Misses & Negative Reactions No notable misses overnight. ## Reporting Today Companies expected to report earnings today: - **$NOW** - ServiceNow reports before the market open. Investors will focus on how recent AI partnership announcements are translating into revenue growth and margin expansion. The stock has been under pressure, down nearly 2% recently, as the market digests these developments. - **$RIVN** - Rivian is also reporting today, with attention on delivery volumes and cost control as the electric vehicle sector navigates competitive and supply chain challenges. - **$PLTR** - Palantir’s earnings will be scrutinized for signs of software recovery and AI-driven contract growth. - **$NVDA** - Nvidia’s report will be a key highlight given its leadership in AI chips and the broader semiconductor market’s sensitivity to fab spending trends. - **$INTC** - Intel’s turnaround story will be tested with earnings, especially after recent upgrades and increased customer push. - **$AVGO** - Broadcom’s report will be watched for confirmation of strong AI chip demand and its $30 billion chip production deal announced by Apple CEO Tim Cook. - **$CMCSA** - Comcast’s earnings will be observed for cable and streaming subscriber trends amid evolving consumer behavior. - **$DKNG** - DraftKings’ results will be reviewed for growth in sports betting and online gaming revenues. - **$FLUT** - Flutter Entertainment’s report will be important for gauging international gaming market dynamics. - **$FOX** / **$FOXA** - Fox Corporation’s earnings will be monitored for advertising revenue trends and content strategy effectiveness. - **$MDA** - Data not available for MDA’s earnings specifics. - **$PENG** - Penguin Solutions’ earnings will be noted in light of recent positive coverage on its prospects. - **$RXT** - Rackspace Technology’s CFO emphasized a strategic shift to AI outcomes over raw GPU capacity, which will be a key theme in their earnings. - **$ZIM** - Data not available for ZIM’s earnings specifics. ## Earnings Themes - **AI as a Growth Catalyst:** A dominant theme is the role of artificial intelligence in driving revenue growth and margin expansion. Companies like Micron, Microsoft, Broadcom, and Nvidia are capitalizing on AI demand, with significant investments and partnerships fueling optimism. - **Memory and Semiconductor Supply Tightness:** SK Hynix’s IPO and Micron’s massive investment highlight expectations of a prolonged memory chip shortage, which supports pricing power and capital expenditure in the sector. - **Mixed Sentiment on Guidance:** While some companies are raising guidance based on AI tailwinds, others remain cautious due to macroeconomic uncertainties and competitive pressures, as seen in the cautious tone around ServiceNow and Rivian. - **Margin Pressures vs. Expansion:** Some tech companies are experiencing margin expansion due to AI-driven efficiencies, while others face cost pressures from supply chain issues and investments in new technologies. ## Earnings Trade Ideas 1. **Micron Technology ($MU):** With a $250 billion AI-focused investment plan and a bullish outlook on memory shortages, Micron presents a compelling long-term growth story. Investors looking to play the AI hardware boom may consider exposure here, especially given the company’s leadership in memory chips critical for AI workloads. 2. **ServiceNow ($NOW):** Despite recent share price weakness, ServiceNow’s upcoming earnings will be a key test of how well its AI partnerships are translating into financial results. A positive surprise could trigger a recovery in the stock, making it a potential tactical buy on a pullback ahead of earnings. In summary, the earnings landscape continues to be shaped by AI-driven growth narratives, with semiconductor and software companies leading the charge. Investors should watch for earnings beats tied to AI revenue and cautious guidance reflecting broader economic uncertainties.