US Stocks Mixed: Micron Surges on AI Optimism While Apple Slumps
US stock markets displayed a divergent trend on Thursday, as a massive rally in AI-driven semiconductor stocks provided a cushion for the Dow Jones, even as the Nasdaq struggled. While chipmakers like Micron and Qualcomm posted significant gains, tech giant Apple faced selling pressure following announcements of product price hikes.
Micron and Qualcomm Lead AI-Driven Semiconductor Rally
The semiconductor sector acted as the primary engine for market stability, easing fears that AI-related stocks had become overvalued. Micron Technology emerged as the standout performer, with its shares surging 9.7%. The memory-chip maker reported quarterly profits and revenue that significantly exceeded Wall Street estimates and provided a robust revenue forecast for the current quarter.
Similarly, Qualcomm saw its shares climb 3.1% after the company raised its long-term growth projections. Qualcomm expects the rapid expansion of artificial intelligence to drive non-smartphone revenue—including data centers—to reach $40 billion by fiscal year 2029. This momentum was echoed in Asian markets, where South Korea’s SK Hynix jumped 13.1%, contributing to a 5.4% surge in the Kospi index.
Apple Faces Headwinds from Price Hikes and Rising Costs
In contrast to the chipmakers, Apple shares fell by 4.8% as investors reacted to news of increased costs for consumers. Analysts reported that the company has implemented price increases across several product lines, including hikes of 15% to 20% for Mac computers.
The pressure on Apple is two-fold. Beyond the direct impact of consumer price sensitivity, the company is also grappling with rising input costs. Higher memory and storage prices, which are currently benefiting semiconductor manufacturers, are simultaneously increasing the production expenses for device makers like Apple, squeezing potential margins.
Macroeconomic Indicators: Inflation and Treasury Yields
Broader market sentiment was supported by easing Treasury yields and inflation data that aligned with economist expectations. The US Personal Consumption Expenditures (PCE) index, a key inflation metric, showed an acceleration to 4.1% in May from 3.8% in April, matching previous forecasts.
This stability contributed to a decline in the benchmark 10-year US Treasury yield, which eased to 4.36% from 4.41% on Wednesday. Furthermore, energy markets provided a slight reprieve as Brent crude oil slipped 0.1% to $73.81 per barrel. The retreat in oil prices, which had briefly breached the $100 mark during recent geopolitical tensions, has bolstered hopes that inflationary pressures may moderate in the coming months.
Key Takeaways
- AI Momentum Sustained: Strong earnings and optimistic forecasts from Micron and Qualcomm have helped validate the high valuations of AI-related semiconductor stocks.
- Apple’s Margin Pressures: Apple is navigating a difficult period marked by significant price hikes on Mac computers and rising component costs due to the semiconductor boom.
- Stabilizing Macro Environment: Inflation data meeting expectations and receding Treasury yields have provided a sense of predictability for global investors.