Micron, Alibaba, Lithium Americas, Iberdrola, and JD Sports

Memory chipmaker Micron Technology (MU) reported fiscal fourth quarter results after the bell on Tuesday that topped Wall Street estimates.

Micron posted revenue of $11.3bn (£8.38bn) for the quarter, ahead of the $11.15 billion expected by analysts polled by Bloomberg. Adjusted earnings per share of $3.03 also beat forecasts of $2.84.

The company's guidance for its fiscal first quarter was also ahead of expectations. Micron guided for first quarter revenue between $12.2bn and $12.8bn, more than the $11.9bn expected by analysts tracked by Bloomberg. The chipmaker said it expects first quarter adjusted earnings per share to fall to between $3.60 and $3.90, ahead of the $3.05 projected.

Micron shares rose 1% in pre-market trading on Wednesday and continue to trade near all-time highs, having risen nearly 98% year-to-date.

Deutsche Bank (DBK.DE) director of equity research Melissa Weathers said in a note on Wednesday that “Micron’s [August-quarter] print and outlook cleared a very high bar, in our view, with the star of the show being stellar gross margins.

“This margin momentum is expected to sustain into 2026, as the company benefits from multiple tailwinds (supply tightness driving ASPs [average selling price] higher, solid cost controls, and rich mix).”

Shares in Alibaba (9988.HK, BABA) popped on Wednesday after the Chinese tech giant revealed plans to lift its spending on AI.

Alibaba's Hong Kong-listed shares rose more than 8% in Wednesday's session, while its New York-listed shares gained nearly 10% in pre-market trading.

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Bloomberg reported that Eddie Wu, CEO of Alibaba, said that the company would soon add to its planned 380 billion yuan (£39.57bn) spending on AI models and infrastructure over the next three years.

“The industry’s development speed far exceeded what we expected, and the industry’s demand for AI infrastructure also far exceeded our anticipation,” Wu reportedly said at a developer conference in Hangzhou on Wednesday. “We are actively proceeding with the 380 billion investment in AI infrastructure, and plan to add more.”

Shares in Lithium Americas soared nearly 82% in pre-market trading on Wednesday, following reports that the Trump administration is seeking an equity stake in the miner.

Reuters reported late on Tuesday that the administration was eyeing an equity stake of as much as 10% in Lithium Americas, citing two people familiar with the discussion.

This reportedly comes as the administration renegotiates terms of Lithium America's $2.26bn Energy Department loan for its Thacker Pass lithium project with General Motors (GM).

Spanish energy firm Iberdrola (IBE.MC) announced on Wednesday that it would invest €58bn (£50.66bn) through to 2028, with a focus on accelerating growth in networks in the US and UK.

Iberdrola said that €20bn of this investment would first go to the UK, followed by €16bn in the US, €9bn in Iberia, €7bn in Brazil, as well as €5bn in other European Union countries and Australia.

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Ignacio Galán, executive chairman of Iberdrola, said: “This plan aims to transform Iberdrola's profile into a more regulated company, with networks as a vector for growth.”

Under its plans, Iberdrola said it was aiming for earnings before interest, tax, depreciation and amortisation (Ebitda) to reach €18bn in 2028 and adjusted net profit to hit €7.6bn by 2028.

In the UK, shares in JD Sports rose 3.5% on Wednesday morning as the sportswear retailer said it expected to see “limited impact from US tariffs this financial year”.

JD Sports reported a 18% increase in sales to £5.94bn ($8bn) in the first half but a 13.5% fall in profit before tax and adjusting items to £351m.

Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, said: “JD Sports’ first-half performance was broadly as expected against a tough retail backdrop, with all regions posting like-for-like sales declines.

“Trading across Europe and the UK remains weak, especially in the latter. Year-on-year numbers have come up against some tough comparables, with last year’s sales getting a foot-up from the men’s 2024 Euros. The outlook for the UK remains underwhelming, with recent changes to employer taxes and minimum wages bringing a handful of extra costs and challenges.

“With the share price having fallen by more than 40% over the last year, the recent challenges and market softness now look well priced in.

“Trading at just 6.8 times next year’s earnings, the valuation offers plenty of downside protection. And if investors are patient enough to ride out some uncertainty over the next couple of years, it could prove to be a very attractive entry point.”

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