Alphabet launched Gemini 4 Argon, its most advanced AI model yet, while Micron reported fiscal Q4 revenue of $54.23 billion — well above expectations — sending semiconductor stocks broadly higher to open October.
Alphabet rolled out its most advanced artificial intelligence model to date, Gemini 4 Argon, on Wednesday, while Micron Technology reported fiscal fourth-quarter results that far exceeded Wall Street expectations — two developments that lifted AI-related stocks in premarket trading on October 1 even as broader market headwinds from rising Treasury yields and elevated oil prices persisted.
Alphabet shares rose roughly 2% in early trading after the company began distributing Gemini 4 Argon to select cyber partners. The company said the model sets new records for real-world software engineering and ranks tied for first in cybersecurity benchmarks. Alphabet said it is already deploying the model internally to improve memory optimization at its data centers. The release comes nearly a year after Gemini 3 helped restore the company's standing in the competitive AI landscape.
Micron delivered what analysts described as a blowout quarter, reporting adjusted earnings of $33.42 per share on revenue of $54.23 billion for its fiscal fourth quarter. Analysts polled by LSEG had expected a profit of $31.61 per share on revenue of $51.07 billion. The company also reported an 11-fold increase in data center revenue during the period and offered guidance for the current quarter that exceeded Street forecasts.
Despite the strong results, Micron shares dipped slightly in premarket trading — a muted reaction that analysts attributed to the stock's prior run-up of more than 500% over the last 12 months as the company has benefited from a memory supply crunch driven by AI demand. Nvidia, AMD, and Broadcom all moved higher in early trading, however, underscoring how Micron's results rippled across the semiconductor sector. The Roundhill Memory ETF gained more than 1%, and the VanEck Semiconductor ETF advanced 1%.
Accenture was another standout, with shares surging 17% after the consulting firm reported fiscal fourth-quarter revenue of $18.68 billion — above both its own guidance range of $17.75 billion to $18.4 billion and the FactSet consensus of $18.3 billion. Earnings came in at $3.29 per share, topping the $3.18 per share analysts expected. "We exceeded our fourth-quarter revenue guidance range and capped off another year of broad-based growth across our business," CEO Julie Sweet said in a statement.
The broader market's first day of October came against a backdrop of persistent macro pressures. The 10-year U.S. Treasury yield rose 1 basis point to 5.298%, near levels last seen in 2002, while the 30-year bond yield reached 5.64%. WTI crude gained 1.6% to trade above $91 a barrel amid uncertainty surrounding U.S. policy toward Iran.
September proved difficult for most equities outside of technology. The Dow Jones Industrial Average fell 4.3% for the month, snapping a five-month winning streak, while the S&P 500 dropped 0.5%. The Nasdaq Composite outperformed, gaining 1.9% in September, aided in part by strength in AI-related names and Meta's biggest one-month rally since 2022.
Minneapolis Federal Reserve President Neel Kashkari added a cautionary note, telling CNBC's Steve Liesman that inflation is "still too high" and is "running at around a 3% rate." He said Wednesday's softer-than-expected PCE reading "didn't really change that story for me very much," signaling continued vigilance at the central bank even as the labor market showed resilience. Initial jobless claims for the week ending September 26 totaled a seasonally adjusted 197,000, below the Dow Jones consensus of 200,000.
Kashkari separately noted that the scale of AI infrastructure investment is likely pushing up the neutral rate of interest. Global AI investment is expected to reach approximately $1 trillion in 2026, with U.S. AI capital expenditure projected to rise from 1.8% of GDP in 2026 to 2.8% by 2028, according to Goldman Sachs projections.
Whether AI-driven earnings strength can sustain equities as borrowing costs stay elevated remains the central question heading into the fourth quarter. "While those factors remain headwinds, corporate earnings have continued to show resilience," said Tracie McMillion, head of global asset allocation strategy at Wells Fargo Investment Institute. "The key question is whether that earnings strength can continue as borrowing costs remain elevated."
Jay Goldberg is a staff writer at TechEchelon covering technology, markets, and policy. He files the breaking news and deal coverage that move the publication's core desks.
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