Wall Street delivered a mixed performance on Thursday as a blockbuster update from Micron Technology failed to halt a broader retreat in major technology stocks, while fresh inflation data pointed to another rise in prices during May.
The Nasdaq Composite slipped 0.5%, extending a difficult spell for technology shares, while the S&P 500 drifted into negative territory. The Dow Jones Industrial Average managed a modest 0.1% gain, helped by its lower exposure to the largest technology names.
Micron Technology jumped more than 15% after reporting record quarterly results and issuing guidance ahead of Wall Street expectations. The update provided fresh evidence that spending on AI infrastructure remains elevated, even as investors increasingly question whether the sector’s rapid growth can justify current valuations.
The upbeat results, however, were not enough to shield the wider technology market from selling pressure. Investors continued to question whether the enormous sums being poured into AI infrastructure will leave enough free cash flow for the industry’s largest players, weighing on several hyperscale technology companies.
Apple was among the biggest casualties, with its shares falling around 6% after announcing substantial price increases across its MacBook and iPad ranges.
The company cited soaring memory and storage costs as the reason behind the move, highlighting the growing impact of a global memory shortage that has rippled through the technology industry.
The memory shortage is not affecting Apple alone. Microsoft and other PC manufacturers have already raised prices on laptops and desktops, while console makers Nintendo, Sony and Microsoft have also increased prices, pushing some systems well above their launch levels.
Analysts warn that further increases could eventually curb consumer demand as buyers delay or avoid expensive technology purchases altogether. There is little expectation of relief in the near term, with some forecasts suggesting supply constraints could persist for several years.
Elsewhere, Qualcomm gained roughly 7% after unveiling plans to expand beyond smartphones and target the data centre market. The chip designer said it aims to generate $15 billion in new revenue from products including AI-focused chips and servers, underscoring how competition for a share of the artificial intelligence boom continues to intensify.
