Apple and Microsoft raised prices on MacBook, iPad, Xbox, and Surface products last week, citing higher memory and storage costs driven by AI demand for data center components. Micron Technology reported strong fiscal third-quarter 2026 results and extended its chip shortage forecast beyond 2027, while President Trump signed two executive orders on Monday to accelerate U.S. quantum technology development. The moves highlighted a widening gap in the AI investment cycle, with semiconductor suppliers benefiting from soaring infrastructure demand while consumer technology firms faced mounting cost pressures and weaker investor sentiment.
Apple and Microsoft Raise Hardware Prices on AI Chip Costs
Apple raised prices on select MacBook and iPad models, while Microsoft increased prices for Xbox consoles and Surface devices. Both companies pointed to higher memory and storage costs as AI-driven demand for data center components tightened global supply. Apple is reportedly asking the Trump administration to let it buy memory chips from blacklisted Chinese chipmaker CXMT, hoping to reduce rising chip costs. Apple shares fell over 4% during the week, while Microsoft lost over 1% as traders reassessed the outlook for consumer-focused technology businesses.
Micron Extends Chip Shortage Forecast Beyond 2027
Micron Technology surged after reporting strong fiscal third-quarter 2026 results, reflecting robust demand for memory chips used in AI data centers. Micron said the chip shortage is now expected to continue beyond 2027, rather than ending early next year as previously forecast. "Supply shortages in memory and storage will take considerable time to improve," CEO Sanjay Mehrotra said on the earnings call. Micron stock posted a 6% weekly decline after surging over 15% on Thursday. Strong demand for memory chips from AI companies helped the stock cross a $1 trillion market value in May.
Qualcomm Announces $3.92 Billion Acquisition and Meta Partnership
Qualcomm unveiled a major AI and data center expansion plan last week, including a $3.92 billion acquisition, a Meta partnership, and higher revenue targets. Despite the announcements, Qualcomm stock fell 14% over the week as investors worried about slow execution and near-term pressure on its smartphone business.
Coherent Receives Bullish Rating on Data Center Demand
Coherent stood out early in the week after management gave an upbeat outlook at industry conferences, citing strong and steady demand for data center networking products. On Thursday, the company also received a bullish rating from Rosenblatt Securities, driven by expectations that U.S.-China supply chain shifts will strengthen its position in the optical transceiver market. Coherent's stock fell over 2% in the last week.
Trump Signs Executive Orders to Accelerate Quantum Technology
President Donald Trump signed two executive orders on Monday to speed up U.S. development of quantum technology. The orders set federal goals to advance quantum computing and improve cybersecurity. One aims to support the development of a government-backed quantum computing platform for scientific research, while the other directs federal agencies to strengthen their defenses against future cyber threats. Infleqtion shares gained 0.7% during the week. The stock saw a 300% increase in message volume over the period, with a 7.3% gain in watchers.
Rocket Lab Joins Nasdaq-100 and Wins NASA Contract
Rocket Lab joined the Nasdaq-100 Index, set a new U.S. Space Force rapid-launch record, won a NASA launch contract, and successfully completed its 12th mission of the year, including its 10th straight successful launch for Japan's Synspective. Rocket Lab stock tumbled 21% during the week.
SpaceX Reportedly Discusses Mobile Service Partnership with Charter
SpaceX shares fell during the week as excitement after its IPO cooled and selling pressure increased. Despite the stock decline, the company continued strong operations, preparing for a major NASA telescope launch and successfully deploying 24 Starlink satellites. SpaceX is reportedly in talks with Charter Communications to launch a consumer mobile service. A partnership would help SpaceX expand beyond Starlink internet by using Charter's ground network as it moves toward offering mobile services directly to customers. SpaceX stock tumbled 17% during the week.
FAQ
Why did Apple and Microsoft raise hardware prices last week?
Apple and Microsoft raised prices on MacBook, iPad, Xbox, and Surface products, citing higher memory and storage costs driven by AI demand for data center components that tightened global supply.
What did Micron say about the chip shortage in fiscal third-quarter 2026 results?
Micron reported strong fiscal third-quarter 2026 results and extended its chip shortage forecast beyond 2027, rather than ending early next year as previously forecast. CEO Sanjay Mehrotra stated that "supply shortages in memory and storage will take considerable time to improve."
What executive orders did President Trump sign on Monday for quantum technology?
President Trump signed two executive orders on Monday to accelerate U.S. quantum technology development. One aims to support a government-backed quantum computing platform for scientific research, while the other directs federal agencies to strengthen defenses against future cyber threats.
