AI Chip Boom Strains Supply as Apple Hikes Prices

Micron Technology ($MU) rallied 19% following a 346% revenue increase and stronger outlook, surpassing Meta Platforms ($META) in market capitalization as AI memory demand surges. OpenAI and Broadcom ($AVGO) unveiled 'Jalapeño,' a custom AI accelerator built in nine months and optimized for large language model inference through enhanced memory movement, networking, and compute resources. NVIDIA ($NVDA) partnered with Amazon Web Services ($AMZN) to launch Amazon EC2 G7 instances powered by Blackwell GPUs, delivering faster AI inference and enabling enterprises to optimize infrastructure for production-scale AI workloads. Goldman Sachs initiated coverage on Intel ($INTC) with a Neutral rating and $150 price target, while the broader semiconductor sector benefited from Micron's positive outlook.

Apple ($AAPL) announced price increases on laptops and iPads, raising its lowest-priced laptop from $599 to $699, as memory chip costs surged 98% in the first quarter and continued climbing. The iPhone maker stated it could no longer absorb rising component costs driven by AI data center demand, with companies including NVIDIA signing large supply agreements that left consumer electronics manufacturers scrambling for capacity. Apple shares fell approximately 5% following the announcement, though Wedbush analysts indicated the company is unlikely to experience significant customer churn despite the price adjustments. Industry observers noted that Apple competitors may face even larger price increases due to weaker supplier relationships, while research firm IDC projected sharp contractions in global smartphone and computer markets this year. iPhones remained unaffected by the initial price adjustments, though analysts expect pricing pressure to extend to the device category as component costs continue rising.

Meta Platforms ($META) appointed CRED founder Kunal Shah as global head of WhatsApp following a $900 million investment in the Indian fintech firm, signaling an expansion strategy beyond messaging into digital payments and commerce with focus on emerging markets. Google Play Store fee adjustments are projected to deliver DKK 3 million in direct cost savings for Trophy Games Development. Qualcomm ($QCOM) raised long-term revenue and earnings targets at its investor day, prompting analysts at Bank of America and UBS to increase estimates and price targets while highlighting opportunities in data center and edge AI applications. BlackBerry leadership discussed how its Alloy Kore platform could unlock higher software revenue through opportunities in AI, embedded software, and secure communications.

Cathie Wood's ARK Invest purchased $9.5 million in Palantir Technologies ($PLTR) shares during the broader market selloff, representing a vote of confidence in the enterprise AI platform. Needham analysts issued a positive view on Palantir's partnership with Zeta Global, noting that Foundry integration could strengthen enterprise marketing infrastructure capabilities. Valuation discrepancies emerged in the semiconductor sector, with Advanced Micro Devices ($AMD) trading at 97 times forward earnings compared to NVIDIA's 21 times forward multiple, raising questions about relative positioning and growth expectations.