US Markets Mixed: Micron Surges on AI Optimism While Apple Slips

The US stock markets displayed a divergent performance on Thursday as a massive rally in AI-driven semiconductor stocks provided a cushion for the Dow Jones. While chipmakers benefited from strong earnings and positive outlooks, heavyweights like Apple faced selling pressure following news of product price hikes.

Micron and Qualcomm Drive AI-Led Rally

The semiconductor sector acted as the primary engine for market gains, specifically targeting fears that AI stocks had become overvalued. Micron Technology emerged as the standout performer, with its shares surging 9.7%. This jump followed a quarterly report where both profit and revenue comfortably exceeded Wall Street estimates. Furthermore, Micron issued a stronger-than-expected revenue forecast for the current quarter, reinforcing investor confidence in the continued demand for memory chips.

Qualcomm also joined the upward trend, gaining 3.1%. The chipmaker raised its long-term growth projections, stating that the rapid expansion of artificial intelligence is expected to drive revenue from non-smartphone sectors—including data centers—to USD 40 billion by fiscal 2029. This bullish sentiment was echoed in Asian markets, where South Korea's SK Hynix jumped 13.1%, helping the Kospi surge by 5.4%.

Apple Faces Headwinds from Price Hikes

In contrast to the semiconductor boom, Apple shares experienced a significant decline of 4.8%. The slump was triggered by reports that the tech giant is increasing prices across several product lines. Analysts noted that Mac computers could see price hikes ranging from 15% to 20%.

This move highlights a growing challenge for device manufacturers: rising component costs. As semiconductor companies benefit from higher memory and storage prices, device makers like Apple are facing increased expenses, which they are attempting to pass on to the consumer. This pricing strategy appears to have triggered immediate investor caution.

Inflation Data and Treasury Yields Stabilize Markets

Broader market sentiment was supported by macroeconomic stability. The US Personal Consumption Expenditures (PCE) index, a key inflation metric, showed inflation accelerating to 4.1% in May from 3.8% in April—a move that largely matched economist expectations and prevented market volatility.

This data contributed to a softening in Treasury yields. The benchmark 10-year US Treasury yield eased to 4.36%, down from 4.41% on Wednesday and 4.56% earlier in the month. Additionally, energy markets provided relief as Brent crude slipped 0.1% to USD 73.81 per barrel, retreating from previous highs seen during the Iran conflict. The cooling in energy prices has bolstered hopes that inflationary pressures may moderate in the coming months.

Key Takeaways

  • AI Sentiment Remains Strong: Robust earnings and optimistic long-term revenue forecasts from Micron and Qualcomm are helping to validate the AI investment thesis.
  • Consumer Tech Pressure: Apple's decision to hike Mac prices by up to 20% reflects the impact of rising semiconductor component costs on hardware manufacturers.
  • Macroeconomic Stability: Inflationary data meeting expectations and easing Treasury yields have provided a stable backdrop for mixed market movements.