Qualcomm convinces Wall Street on its AI data-center ambitions, and the stock climbs even as the chip momentum stays choppy.
The chip trade split two ways. Qualcomm jumped after laying out its AI data-center strategy, while Apple slid on product price hikes.
Qualcomm (QCOM) rose about 3.8% after its Investor Day. Management guided to roughly $5 billion in AI data-center sales by fiscal 2027.
The engine is the same: surging demand for memory and compute to power AI. Tonight the market's focus shifts to who wins and who gets squeezed by that trend.
| Stock | Movement | What to Watch |
|---|---|---|
| QCOM | ~+3.8% (spiked ~10% intraday) | $5B AI data-center sales target by FY2027; Morgan Stanley upgraded to Equal Weight, PT $231 from $146 |
| AAPL | ~-6.1% | Raised MacBook and iPad prices up to ~$200 to offset memory costs; about $265B in market cap erased |
| MU | Closed ~+14.6% | Record earnings and revenue; HBM memory for AI is fully booked with the shortage running past 2027 |
Qualcomm (QCOM) laid out ambitious targets at its Investor Day. The company guided to roughly $5 billion in AI data-center sales by FY2027 and a push toward over $15B in data-center revenue by FY2029.
The company also raised its FY2029 non-handset revenue target to $40B, up from its previous $22B forecast. Morgan Stanley raised its price target to $231, while Qualcomm’s multi-generation CPU deal with Meta added fuel to the AI data-center story.
Apple (AAPL) raised prices on Macs and iPads as surging memory costs started to hit consumer hardware. Some models saw increases of $200 or more, while iPhone, Watch, and AirPods pricing remained unchanged.
The stock fell around 5% to 6%, erasing hundreds of billions in market value, as investors worried that higher memory costs could squeeze margins or weaken demand.
Micron (MU) rose around 15% after a record quarter. HBM supply is booked through 2026, with demand expected to remain tight into 2027. This is the same theme from two sides: surging memory demand lifts MU and supports the AI chip chain, but it pressures Apple’s hardware margins.
Semiconductors are the center of attention into the open. Qualcomm leads the positive sentiment across the chip sector. Watch whether the AI data-center optimism holds, or whether traders choose to take profits after the run.
US PCE inflation, the Fed’s preferred gauge, rose to 4.1% YoY in May, its hottest reading since April 2023. Core PCE also climbed to 3.4% YoY, keeping inflation well above the Fed’s 2% target. Consumer income and spending both rose 0.7% in May, showing demand has not slowed enough to give the Fed much room for rate cuts. Oil prices eased after the Iran war premium faded, while gold stayed elevated as investors remained cautious.
This keeps the setup tricky for tech: AI earnings are strong, but sticky inflation and higher-for-longer rate expectations can still pressure valuations.
Tonight's story is about who benefits and who carries the cost of the AI boom. Qualcomm and Micron win on AI demand, while Apple pays the bill.
If you hold chip exposure, watch whether the AI data-center theme keeps building. What stocks are you watching tonight?
Track QCOM, AAPL, and MU tonight straight from the app. Check your watchlist on Gotrade now!
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