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

The US stock markets displayed a divergent trend on Thursday, as a massive rally in AI-driven semiconductor stocks balanced out significant losses in big tech. While the Dow Jones Industrial Average gained momentum, the Nasdaq Composite faced downward pressure due to struggles in major technology giants.

AI Chipmakers Lead the Charge: Micron and Qualcomm Shine

The primary driver for the Dow’s upward movement was a surge in memory-chip manufacturer Micron Technology, which saw its shares jump 9.7%. The rally was fueled by a stellar quarterly report where Micron’s profit and revenue comfortably exceeded Wall Street estimates. Furthermore, the company issued a stronger-than-expected revenue forecast for the current quarter, providing much-needed reassurance to investors worried about the valuation of AI-related stocks.

Qualcomm also joined the semiconductor rally, posting a 3.1% gain. The company provided an optimistic long-term growth forecast, predicting that the rapid expansion of artificial intelligence will help double its non-smartphone revenue—including data centers—to USD 40 billion by fiscal 2029. This sentiment was mirrored in Asian markets, where South Korea's Kospi surged 5.4%, led by a 13.1% jump in SK Hynix.

Apple Faces Headwinds Amid Price Hikes and Rising Costs

In contrast to the semiconductor boom, Apple shares tumbled 4.8%. The decline followed news that the tech giant is implementing price increases across several product lines. Analysts noted that Mac computers, in particular, could see price hikes ranging from 15% to 20%.

This price adjustment is partly driven by rising component costs. As semiconductor companies benefit from higher memory and storage prices, device manufacturers like Apple are facing increased expenses, which are now being passed on to the consumer. This move has created friction for the Nasdaq Composite, which fell 1.2% as large-cap tech stocks struggled.

Inflation Data and Treasury Yields Stabilize Markets

Macroeconomic indicators provided a stabilizing effect for the broader markets. US consumer inflation, measured by the Personal Consumption Expenditures (PCE) index, rose to 4.1% in May from 3.8% in April, meeting economist expectations. This predictable inflation data helped ease Treasury yields. The benchmark 10-year US Treasury yield eased to 4.36%, down from 4.41% on Wednesday and 4.56% earlier this month.

Furthermore, energy markets showed signs of cooling. Brent crude oil slipped 0.1% to USD 73.81 per barrel. The retreat from previous highs—which saw oil briefly cross the USD 100 mark during the Iran conflict—has bolstered hopes that inflationary pressures may moderate in the coming months.

Key Takeaways

  • AI Momentum: Strong earnings and optimistic revenue forecasts from Micron (+9.7%) and Qualcomm have reinforced investor confidence in the AI semiconductor sector.
  • Apple's Margin Pressure: Apple shares dropped 4.8% following reports of significant price hikes on Mac computers due to rising memory and storage costs.
  • Macro Stability: Predictable PCE inflation data and easing Treasury yields have provided a supportive backdrop for the Dow Jones, even as the Nasdaq faced tech-led volatility.