US Markets Mixed: Micron Soars on AI Optimism as Apple Shares Slide

US stock markets displayed a divergent performance on Thursday as the surge in artificial intelligence-linked semiconductor stocks battled headwinds in the consumer tech sector. While the Dow Jones gained momentum, the Nasdaq faced downward pressure due to significant declines in major technology giants.

Micron and Qualcomm Lead AI-Driven Rally

The semiconductor sector provided a major boost to investor sentiment, led by a stellar performance from Micron Technology. Micron's shares surged 9.7% after the memory-chip maker reported quarterly profit and revenue figures that comfortably surpassed Wall Street estimates. Crucially, the company issued a stronger-than-expected revenue forecast for the current quarter, which helped soothe fears regarding the potential overvaluation of AI-related stocks.

Qualcomm also joined the rally, with its stock rising 3.1%. The chipmaker bolstered investor confidence by raising its long-term growth forecast, projecting that the rapid expansion of artificial intelligence will drive revenue from non-smartphone segments—such as data centers—to USD 40 billion by fiscal 2029. This optimism was mirrored in Asian markets, where South Korea's SK Hynix jumped 13.1%, propelling the Kospi index up by 5.4%.

Apple Faces Pressure from Price Hikes

In stark contrast to the chipmakers, Apple shares fell by 4.8% as the tech giant announced price increases across several key product lines. Analysts noted that Mac computers, in particular, are seeing price hikes ranging from 15% to 20%.

This move comes as device manufacturers grapple with rising costs; higher memory and storage expenses are currently benefiting semiconductor firms but are simultaneously squeezing the margins of hardware makers like Apple. This tension between component suppliers and device assemblers remains a critical theme for tech investors.

Macroeconomic Indicators and Energy Stability

Broader market movements were also influenced by easing Treasury yields and steady inflation data. The US Personal Consumption Expenditures (PCE) index, a key inflation gauge, showed an acceleration to 4.1% in May from 3.8% in April, which aligned with economist expectations. Consequently, the benchmark 10-year US Treasury yield eased to 4.36%, down from 4.41% the previous day.

In the commodities market, Brent crude oil prices slipped slightly to USD 73.81 per barrel. The retreat from recent highs—driven by the cooling of geopolitical tensions following the Iran conflict—has raised hopes among market participants that inflationary pressures may moderate in the coming months.

Key Takeaways

  • AI Sector Strength: Robust earnings and optimistic long-term forecasts from Micron and Qualcomm are driving a resurgence in AI-linked semiconductor stocks.
  • Consumer Tech Headwinds: Apple's decision to hike Mac prices by up to 20% has led to a significant share price drop, highlighting the impact of rising component costs.
  • Stabilizing Macro Environment: Inflation data meeting expectations and declining Treasury yields are providing a stabilizing backdrop for global markets.