Apple Raises Prices, Micron Rallies | Bloomberg Tech 6/25/2026

Micron forecasts shortages through 2028

Micron projected fiscal Q4 revenue of up to $51 billion, crushing Wall Street's $43 billion estimate, with management warning that AI-driven memory shortages could extend beyond 2027.

Apple raises prices across multiple lines

Apple implemented rare simultaneous price increases on iPad, Mac, Apple TV, and Vision Pro—excluding iPhone—citing persistent high memory and storage costs tied to AI data center demand.

Strategic component allocation

Memory manufacturers are deliberately diverting supply away from consumer electronics toward AI data centers, creating a zero-sum environment where device makers must absorb costs or raise prices.

$15 billion revenue target by 2029

Qualcomm projected $5 billion in data center revenue by fiscal 2027, scaling to $15 billion by fiscal 2029, alongside doubling non-smartphone sales to $40 billion annually.

Key hyperscaler partnerships secured

CEO Cristiano Amon confirmed contracts with Meta for two CPU generations plus engagements with one major U.S. and one major Chinese hyperscaler to drive the 2027 revenue goal.

Power-efficient differentiation strategy

Qualcomm is targeting the shift toward 'agentic' AI and disaggregated compute with proprietary high-bandwidth memory solutions that avoid expensive HBM while reducing power consumption.

Tech becomes inflationary force

After decades as a deflationary driver, the tech sector is now contributing to core inflation as infrastructure underinvestment collides with multiplicative AI demand growth.

Semiconductor valuations remain reasonable

Despite soaring stock prices, memory and chip companies trade at compressed multiples as earnings growth outpaces share appreciation, with investors gaining tolerance for demand-driven inflation.