Higher component costs, ambitious capital spending and concerns over consumer demand drove sharp moves across several major technology stocks during the week.
- Apple and Microsoft raised prices on key hardware products due to higher costs of AI-driven memory chips.
- Micron delivered strong fiscal third-quarter results and extended its chip shortage forecast beyond 2027.
- Infleqtion shares drew investors’ interest after President Trump signed two executive orders to accelerate U.S. quantum technology development.
The artificial intelligence investment cycle exposed a widening gap across the technology sector last week. While semiconductor companies supplying AI infrastructure benefited from soaring demand, consumer technology firms faced mounting cost pressures, weaker investor sentiment and concerns over future spending.
The shift showed investors are looking beyond AI hype and paying closer attention to profits and expenses.
Consumer Hardware Under Pressure
Apple (AAPL) and Microsoft (MSFT) came under selling pressure after announcing price hikes across several flagship hardware products. 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.
Investors worried that passing those higher costs to consumers could weaken demand and slow future device upgrades. Apple shares fell over 4% during the week, while Microsoft lost over 1% as traders reassessed the outlook for consumer-focused technology businesses.
On Stocktwits, retail sentiment for Apple stock remained in ‘bullish’ territory with a 67% increase in message volume over the past week, while watchers remained flat. Retail sentiment for Microsoft stock dropped to ‘bullish’ from ‘extremely bullish’ territory the previous day.
Chip Suppliers Benefit From AI Boom
In contrast, Micron Technology (MU) 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 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.
Retail sentiment around the stock remained in ‘extremely bullish’ territory. MU saw a 46% surge in message volume over the last week, with a 1.8% gain in watchers.
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.
COHR Draws Attention To Data Center Demand
Coherent (COHR) 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. Retail sentiment around the stock turned to ‘bearish’ from ‘neutral’ territory the previous day.
INFQ Gets Federal Push
Infleqtion shares gained after 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’s stock 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.
RKLB Hits Major Milestones While SPCX Stock Pulls Back
Rocket Lab had a strong week, joining the Nasdaq-100 Index, setting a new U.S. Space Force rapid-launch record, winning a NASA launch contract, and successfully completing its 12th mission of the year, including its 10th straight successful launch for Japan’s Synspective.
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.
Also, SpaceX is reportedly in talks with Charter Communications (CHTR) 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.
Both Rocket Lab and SpaceX stocks tumbled 21% and 17%, respectively, during the week.
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