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The iPhone Maker Has Raised Prices on MacBooks and iPads

Apple's price hikes could undercut its efforts to offer more affordable products.
Credit: Adam Gray / Bloomberg / Getty Images

Key Takeaways

• Apple shares plunged Thursday after the company announced higher prices on several products, including MacBooks and iPads.
• The move comes after Tim Cook reportedly said rising memory costs could make price hikes "unavoidable."

Apple is starting to feel the squeeze from rising memory costs.

Shares of Apple (AAPL) dropped more than 6% to around $275 Thursday, leading losses on the S&P 500 and nearly wiping out the stock's gains for the year, after the company lifted prices on several products, including MacBooks and iPads.

The move comes just days after Tim Cook told the Wall Street Journal that "unsustainable" increases in memory costs could make price hikes "unavoidable," rattling confidence in the company's ability to weather an industrywide shortage of key parts. The company did not respond to an Investopedia request for comment in time for publication.

Microsoft (MSFT), which said Thursday that it plans to raise prices for its XBOX consoles as of August, said it's seen storage and memory prices more than double, and that the company anticipates another doubling by next fall. "The entire consumer electronics industry is struggling with the current components crisis," the tech giant said in a release. Its shares fell about 3% Thursday.

Last week, Cook had told the WSJ, “I’ve never seen anything like it in any area in over 40 years.” SpaceX (SPCX) and Tesla (TSLA) CEO Elon Musk responded to the comment on social media Thursday, calling the memory runup the "biggest price jump in anything I’ve ever seen too."

Meanwhile, shares of Apple and Microsoft memory suppler Micron (MU), popped close to 16% Thursday, thanks to a blowout earnings report on the back of soaring sales and growing margins after a series of price hikes. (For more reporting from Investopedia on today's market moves, click here.)

Why This Matters to Investors

While rising product prices are often cheered by investors for their potential to boost revenue and profits, Apple's hikes could be taken as a sign of pressures on its business and undermine its recent efforts to offer more affordable products.

"While Apple is well known for using its huge memory and storage purchases as leverage to secure low prices, the current memory price increases have forced Apple's hand," analysts at Wedbush told clients in a note Thursday, adding that the company could be pushed to lift prices again.

Earlier this year, Apple took steps to cater to value-sensitive consumers with more-affordable products, such as the popular Neo line of lower-cost MacBooks that launched in March, and the slate of price hikes could present a setback in that strategy. The Neo is one of the many products that saw its price go up, by $100 to $699.

Prices for other MacBooks also rose, with Apple's MacBook Air climbing $200 to $1,299, and the MacBook Pro up $300 to $1,999. The iPad Air increased $150 to $749 and the iPad Pro jumped $200 to $1,199. While Apple declined to hike prices for iPhones, its biggest driver of sales, Wedbush suggested those could follow later.

Wedbush said it remains bullish on Apple's stock, however, maintaining an "outperform" rating and Street-high target of $400 on expectations the price hikes won't lead to substantial churn from Apple's loyal customer base.

Deepwater managing partner and co-founder Gene Munster said in a post on X that the stock's drop "feels like an overreaction," and underestimates Apple's hold on those already in its ecosystem. "My take is for the most part, demand for Apple products are inelastic, that is a large change in price has a smaller change in demand," he wrote.

Thursday's decline leaves Apple shares about 13% off their record highs earlier this month, and just 1% higher for the year so far. They've added nearly 40% over the past 12 months.

This article has been updated since it was first published to include comments from Elon Musk, details on Microsoft's hike to XBOX prices, and reflect more recent stock prices.

With Thursday's gains, Qualcomm shares have risen 20% since the start of 2026.
Credit: VCG / Getty Images

Key Takeaways

• Qualcomm shares rose after the chipmaker laid out its new growth plan, nearly doubling its long-term forecast for the revenue it expects to make from non-smartphone chips.
• The longtime smartphone chip maker is looking to expand its presence in data centers to capitalize on AI demand that has boosted other tech firms.

Qualcomm shares rose Thursday after the chipmaker issued bullish new long-term forecasts amid expectations for continued strong AI demand.

Shares of Qualcomm (QCOM), which has spent years as a dominant player in the smartphone chip-making industry, gained 4% to finish the day at around $205, after jumping to nearly $220 early in the session after the company outlined its growth expectations. (Read our full coverage of today's market action here.)

The company late yesterday said it now expects "non-handset" revenue of $40 billion by fiscal 2029, up from about $10.6 billion in fiscal 2025 and nearly double its previous forecast of $22 billion, largely because of an estimated $15 billion or more in revenue from its new push into data centers. Qualcomm unveiled a new slate of data center-focused products, and also announced a new collaboration with Meta Platforms (META) to supply the Facebook and Instagram parent with CPUs starting in the back half of 2028.

Why This Matters to Investors

Qualcomm is looking to further diversify its revenue streams to make the company less vulnerable to pullbacks in smartphone sales by getting into the AI boom that has sent many stocks to record highs this year.

Morgan Stanley analysts upgraded Qualcomm to a neutral rating following the investor day presentation, and hiked their price target to $231 from $146. The analysts said they were "wrong to be skeptical" and see potential in Qualcomm entering the data center market, but said they would still favor more established names in the sector.

UBS analysts lifted their target to $235 from $170 while maintaining a neutral rating, and Bank of America analysts kept their "underperform" rating while bumping their target to $220 from $195, saying that "meaningful data center success" is already priced into the stock. All three groups of analysts are now ahead of the Visible Alpha consensus price target of roughly $189.

Qualcomm shares have gained about 20% since the start of the year, lagging the gains of many other semiconductor stocks. The stock is down 21% from the record high it hit in late May, as tech stocks have come under pressure in recent weeks.

UPDATE: This article has been updated with the price of shares at the close of trading Thursday.

Off The Charts: The Visual Says It All

The portion of economic growth that shows up in paychecks has been declining since the second half of the 20th century.
Credit: Jens-Kristian Ekholm / Getty Images

Key Takeaways

• Wages and salaries for U.S. workers make up the smallest share of economic output in history, according to records going back to 1947.
• Researchers have proposed many explanations for the decline in the labor share since the late 20th century, including rising corporate profits and technological change.

The U.S. as a whole gets more prosperous every year—but less and less of that prosperity is showing up in workers' paychecks.

That's according to fresh analysis by researchers at the Federal Reserve Bank of New York. In a blog post on Wednesday, the researchers highlighted the declining share of the nation's economic output going to workers in the form of wages and salaries, as opposed to corporate profits and capital.

The "labor share" has been on a downward trajectory since the second half of the 20th century and has continued to plunge in the post-pandemic era, reaching an all-time low in 2026, according to records dating back to 1947. Meanwhile, the overall U.S. economy has continued to expand, meaning workers are getting a smaller slice of a larger pie.

Here's how those two statistics, the labor share and the real GDP, have changed since 2017:

Why have workers taken home a smaller and smaller share of economic output in the U.S. and other advanced economies? Many researchers have landed on different answers, including rising profit margins for businesses, the decline of unions, the rise of China as an economic power and technological change, for starters.

Whatever the cause, the trend seems to be firmly on its former trajectory after being interrupted by the pandemic's economic upheaval and follows a pattern similar to past recessions, the New York Fed researchers found.

The team, led by research economist Richard Audoly, examined whether shifts in economic activity across economic sectors during the pandemic had changed the dynamic, but found "little evidence that it will evolve differently from past episodes."

Micron has been one of the best-performing stocks in the S&P 500 for 2026.
Credit: Samuel Boivin / NurPhoto / Getty Images

Key Takeaways

• Micron shares led memory and chip stocks higher Thursday, after the company's latest earnings blew past expectations.
• Other memory and data storage stocks, including Sandisk, Western Digital, and Seagate, also gained.

The rally for memory stocks is back on, with Micron leading the way.

Micron Technology (MU) shares popped nearly 16% to a fresh closing record above $1,213 Thursday, a day after the memory chipmaker posted earnings that blew past estimates on booming AI demand.

Other memory and data storage stocks also surged, with Sandisk (SNDK) shares jumping 22%, while Western Digital (WDC) rose 5% and Seagate Technologies (STX) added 3%. The Roundhill Memory ETF (DRAM) and iShares Semiconductor ETF (SOXX) climbed 10% and 4%, respectively.

Why This Matters to Investors

Micron's strong results could inject some fresh optimism into AI hardware stocks, which pulled back earlier this week.

Wedbush and Citi analysts both lifted their price targets for Micron to $1,400 following the results. Wedbush analysts said the details Micron provided around recent long-term contracts could provide "unprecedented revenue, margin and earnings certainty for an elongated period."

The gains add to what's been a strong year for memory and data storage stocks, as big tech companies buy up the hardware to use in AI data centers. Micron, which has seen its stock more than quadruple in value in 2026, is one of the best-performing stocks in the S&P 500 this year so far.

This article has been updated since it was first published to reflect more recent stock prices.

Shares of SpaceX have been on a wild ride since their arrival on public markets.
Credit: Victor J. Blue / Bloomberg via Getty Images

Key Takeaways

• Shares of SpaceX fell Thursday, establishing a new closing low for the stock.
• Retail investors appear to have sustained enthusiasm for SpaceX stock, while another Wall Street bank has issued a rating this week.

SpaceX stock may get back to climbing—but it didn't happen today.

SpaceX (SPCX) shares finished Thursday down 0.9%, falling for a second straight day. The end-of-day price, $153, was their lowest close since the company's mid-month IPO. The stock, however is holding above the $150 level at which it started trading on June 12, though it did dip below that level intraday Tuesday; its low today was a few cents above that price.

Shares of Elon Musk's space exploration, artificial intelligence and connectivity company have attracted intense scrutiny since the IPO, rising from a $135 offer price to above $225 in just a couple of sessions, before retreating to current levels. Now, even amid optimism that the shares appear to be steadily moving into more index funds, they've lost some steam.

U.S. markets have so far retreated this week, which has weighed on SpaceX and other tech shares. The major indexes were mixed today, with the S&P 500 little changed.

Some market watchers are eyeing retail investors, some who were able to buy shares of SpaceX at IPO prices. Vanda Research in a morning note said retail has been net buyers of SpaceX every day the shares have traded so far.

"Unlike many thematic launches that quickly lose momentum, retail investors have been net buyers every day since the stock listed, reinforcing its status as a retail favourite," Vanda wrote. "The next question is whether fresh inflows reaccelerate or whether investors begin rotating back into individual AI names following the recent pullback."

Traders may also look for opportunity in the rollout of sell-side reports from Wall Street banks. KeyBank early this week started coverage of the stock but refrained from offering a price target. The company "possesses significant disruptive growth avenues, though we believe this is reflective in [the] current valuation and risk/reward appears balanced, in our view," they wrote.

This article has been updated with more-recent share price information.

While the increase in PCE inflation broadly reflected rising gas prices, the uptick in the core measure signals broader, more persistent inflation.
Credit: Robert Nickelsberg / Getty Images

Key Takeaways

• Inflation rose to a three-year high in May, matching forecaster expectations for the PCE report.
• The jump in inflation was largely due to surging fuel prices, which spiked during the Iran war but are now slowly falling.
• However, core inflation excluding gas and food also rose, suggesting inflation pressures extend beyond gasoline.

The Federal Reserve's preferred measure of inflation surged to a fresh three-year high in May, challenging the central bank's mandate to keep prices stable.

The Personal Consumption Expenditures price index rose 4.1% from the same month last year, up from a 3.8% increase in April, the Bureau of Economic Analysis said Thursday. That was the highest annual inflation since April 2023 and matched forecasters' expectations, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.

Core prices, which exclude the volatile food and energy categories, rose 3.4% over the year, up from 3.3% in April. It was the largest increase since October 2023 and matched expectations. On a month-over-month basis, PCE prices rose 0.4%, less than the 0.5% forecasters had expected.

What This Means For The Economy

Rising core inflation puts pressure on the Federal Reserve to raise interest rates, a move that could drag on the economy.

The jump in overall inflation largely reflects fuel prices, which surged in May as a result of the war in the Middle East but have since fallen following a peace deal between the U.S. and Iran.

However, the uptick in core inflation signals broader, more persistent inflation and is especially important for the Federal Reserve, which uses the core PCE index as its benchmark for its 2% annual target.

Financial markets widely expect the Fed to raise its benchmark interest rate at some point this year to counter rising inflation. A higher federal funds rate pushes up borrowing costs on all kinds of loans, discouraging borrowing and spending and allowing supply and demand to rebalance.

"The issue for the Federal Reserve – and for markets – is that inflation is much too high; well above the 2% target that they are aiming for," Chris Zaccarelli, chief investment officer at Northlight Asset Management, wrote in a commentary. "As a result, Fed Funds futures are going to continue to predict rate hikes, when less than six months ago, most people expected cuts."

Energy was the main culprit pushing up inflation, rising 6.5% in May from April. Other significant contributors were healthcare, which rose 0.4%, transportation, which was up 0.8%, and a 1.6% increase in the volatile insurance and financial services category.

Housing rose 0.3%, back to a more typical level after spiking 0.5% in April. In a bit of good news for consumers, prices for durable goods (products made to last three years or more) were flat over the month after increasing 0.6% in April.

Despite rising prices, the report showed some positive signs for the health of household finances. Spending rose 0.7% over the month, higher than the 0.6% forecast. Income rose 0.7%, beating the forecast for a 0.4% increase.

Update, June 25, 2026—This article has been updated to include information about consumer spending, details about inflation by category, and expert commentary. It was originally published June 25, 2026.

News of the day for June 25, 2026

The S&P 500 and Nasdaq Composite have closed lower in each of the past three sessions.
Credit: Michael M. Santiago / Getty Images

Stock futures are sharply higher this morning as tech shares bounce back from their recent slump after an AI favorite handily beat earnings estimates; Micron shares are soaring after the memory chip maker posted results well above what analysts had expected thanks to strong AI demand; the Personal Consumption Expenditures report is expected to show that inflation surged in May; SpaceX shares are rising after closing at their lowest level since the company's historic IPO; and Qualcomm shares are surging after the chipmaker issued bullish new forecasts and announced a partnership with Meta. Here's what you need to know today.

Stock Futures Jump Ahead of Inflation Data as Micron Leads Tech Rally

Stock futures are pointing to a higher open Thursday as tech stocks rally following a strong earnings report from Micron Technology, as investors await a key inflation report. Futures tied to the tech-heavy Nasdaq were up 2.1% recently while futures linked to the benchmark S&P 500 and the Dow Jones Industrial Average added 0.7% and 0.2%, respectively. The S&P 500 and Nasdaq have closed lower for three consecutive days amid a sell-off in tech stocks. WTI crude oil futures were down about 1% at just below $70 per barrel after dipping below that level yesterday for the first time since the start of the Iran war. Gold futures are little changed at $4,000 an ounce, trading at their lowest levels of 2026 amid concerns that the Fed could raise interest rates. Bitcoin was trading at $61,100, up from yesterday's low of $59,000, the cryptocurrency's lowest point since Oct. 2024.

Micron Stock Surges After Blockbuster Results

Micron (MU) shares are soaring this morning after the memory chip maker reported quarterly results that blew past Wall Street's expectations last night. The company reported $41.46 billion in revenue for its fiscal third quarter, up nearly 350% year-over-year, along with adjusted earnings of $25.11 per share, each figure coming in well ahead of what analysts had forecast. Analysts have said the AI-driven shortage of memory and data storage components that has boosted sales of Micron and its rivals isn't likely to end anytime soon. Micron shares were up 18% in recent premarket trading, and are on track to open above the record high set on Monday. Other memory stocks were also sharply higher ahead of the opening bell: Sandisk (SNDK), Western Digital (WDC) and Seagate Technology (STX), the only S&P 500 components with bigger year-to-date gains than Micron, were each up more than 10% recently.

New Inflation Data Expected to Show Biggest Jump in Prices Since 2023

The Federal Reserve's preferred measure of inflation, the Personal Consumption Expenditures index, is slated to be released at 8:30 a.m. ET. Experts predict the key inflation metric will show that prices rose 4.1% year-over-year in May, above April's mark of 3.8%. That would be the highest reading since 2023 as fuel prices driven higher by the Iran war's impact on the oil industry have led to increasing prices across the economy. Core inflation, leaving out the impact of volatile food and fuel prices, is seen coming in at 3.4%, up from 3.3% in April. The data will be closely watched by the Fed, which appears to be redoubling its efforts to tame inflation under the leadership of new chair Kevin Warsh. The Fed left its key rate unchanged earlier this month, but market participants are increasingly convinced that the central bank will raise its benchmark rate this year.

SpaceX Stock Rises After Closing at Post-IPO Low

Shares of SpaceX (SPCX) are on track to get a much-needed boost today. The stock was up 4% in premarket trading, a day after they fell 1% to log their lowest post-IPO close yet. The shares, which finished Wednesday at $154.54, set a new closing low by just a few cents, on a down day for markets. They're still above the $150 at which they first opened trading on June 12—but they've fallen a long way from the peak of their post-IPO rally above $225. Retail investors continue to back the stock, according to a note yesterday from Vanda Research, showing up as net buyers in every trading session so far.

Qualcomm Stock Jumps After Company Issues New Long-Term Forecasts

Qualcomm (QCOM) stock is rising after the chipmaker issued bullish new revenue targets at its investor day event Wednesday afternoon. The company, which has spent years as a dominant name in the smartphone-chip industry, is now forecasting "non-handset" revenue of $40 billion by 2029, nearly double its previous outlook of $22 billion, thanks largely in part to its new expectation of $15 billion or more in data center sales. Qualcomm unveiled a slate of new data-center focused products, and also announced a deal with Meta Platforms (META) to collaborate on designing CPUs to run AI models. Qualcomm shares were up 10% recently.

Memory Chip Maker's Revenue More Than Quadrupled in Latest Quarter

Micron Technology shares were up nearly 270% for 2026 through Wednesday's close
Credit: David Paul Morris / Bloomberg / Getty Images

Key Takeaways

• Micron shares popped in extended trading Wednesday after the memory chip maker posted earnings that soared past analysts' estimates.
• The stock has been one of the top performers in the S&P 500 this year, as booming AI demand drove up sales.

Could Micron be ready to resume its record-setting rally?

Shares of Micron Technology (MU) were up 13% to $1,180 in extended trading Wednesday, suggesting a return to levels nearing Monday's record high, after the memory chip maker posted quarterly earnings that topped analysts' estimates and gave a rosy outlook, thanks to booming AI demand.

Micron reported adjusted earnings of $25.11 per share for the fiscal third quarter on revenue that more than quadrupled year-over-year to $41.46 billion, well above the adjusted EPS of $21.05 on revenue of $36.28 billion analysts called for. Its margins surged to 84.6%, from 74.4% the previous quarter and 37.7% a year ago, as the chipmaker raised prices amid an industrywide shortage of memory parts.

Why This Matters to Investors

The better-than-expected results could boost confidence in Micron's room to rise, after what's already been a strong year for the stock.

“Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era,” Micron CEO Sanjay Mehrotra said in a release, adding that the company is "investing at record levels in technology, products and supply to address our customers’ rapidly growing demand."

Micron forecast current-quarter revenue of $49 billion to $51 billion and adjusted earnings per share of $30 to $32, also ahead of analysts' projections compiled by Visible Alpha. Its margins are seen climbing to about 86%.

Micron, which has seen its stock rise nearly 270% in 2026 through Wednesday's close, is one of the best-performing stocks in the S&P 500 this year so far. Its performance has only been surpassed by three other memory stocks: Sandisk (SNDK), Western Digital (WDC) and Seagate Technology (STX).

Nvidia CEO Jensen Huang (right) poses with SK Group Chair Chey Tae-won at the Computex trade show in Taipei earlier this month.
Credit: Lam Yik Fei / Bloomberg / Getty Images

Key Takeaways

• South Korean memory chip giant SK Hynix said it's looking to list on the Nasdaq as soon as July 10.
• The Nvidia partner's stock has helped send Korea- and chip-themed funds higher this year as AI demand drives up sales.

One of the world's hottest names in memory could be coming to the U.S. stock market soon.

South Korean memory chip giant SK Hynix, the Nvidia (NVDA) partner and Micron (MU) rival that's played a key role in driving Korea- and chip-themed funds higher this year, said in a regulatory filing Wednesday that it's looking to list on the Nasdaq as soon as July 10. The company plans to list on the Nasdaq with the ticker symbol "SKHY," the filing said.

To get there, the company said it plans to issue 17.79 million new shares; they will trade in the U.S. as American depositary receipts. The deal will raise 45.45 trillion won ($29.65 billion), according to the filing. Its shares listed in Korea added 1% yesterday; they have roughly tripled in value since the year began and are up some 800% over the past 12 months.

Why This Matters to Investors

The move would make it easier for American investors to get direct exposure and widen SK Hynix's investor base, which could also boost the shares.

A memory shortage driven by booming demand for AI hardware has led to soaring profits for major memory chipmakers such as SK Hynix, which holds nearly 60% of the global market for high-bandwidth memory, according to a report earlier this month from Counterpoint Research. SK Hynix in April posted record first-quarter sales to the tune of 52.58 trillion Korean won, or around $34.09 billion.

Its American rival Micron, which reported earnings after the closing bell today, turned in revenue of $41.46 billion for the quarter ended in May, well ahead of estimates compiled by Visible Alpha. Micron's stock, which set a record high on Monday, is up some 260% for the year so far and 700% over the past 12 months.

Exchange-traded funds heavily concentrated in SK Hynix, along with Micron, have seen big gains this year as investors clamored for exposure to memory as "pick-and-shovel" plays for the AI boom.

The Roundhill Memory ETF (DRAM)—comprised nearly 75% of SK Hynix, Samsung, and Micron—has soared more than 150% from where it opened at the beginning of April, making it the best-performing non-leveraged U.S. equity ETF this year, according to TradingView data.

Wendy's stock at one point Wednesday surged over 40%, signaling the arrival of meme stock traders.
Credit: Al Drago / Bloomberg via Getty Images

Key Takeaways

• Wendy's beleaguered stock got a boost from Redditors that drove the stock up over 40% at one point Wednesday.

• Redditors called the trade the "Classic Combo," saying retail investors targeted the stock for its elevated short interest.

The latest meme darling: the fast-food chain known for the Frosty and the four-cornered burger.

Shares of Wendy's (WEN) surged over 40% at peaks on Wednesday after Redditors' "We need to save Wendy's" thread went viral. Though the beleaguered company's stock later handed back some of those gains, the WallStreetBets crowd appears to have all but erased its year-to-date losses, which as of Tuesday's close were around 25%.

WHY THIS MATTERS TO YOU

Market action earlier in the week suggested that investors had turned cautious after bidding up tech stocks. The arrival of a new meme stock might signal the return of risk-on sentiment.

Wendy's was already a potential turnaround in the making. The chain last month appointed Bob Wright, former chief of Potbelly, to lead the company amid declining sales and store closures; it named Steve Cirulis, who previously worked with Wright, its CFO yesterday. Though rumors of activist involvement and analyst upgrades gave the stock short-lived boosts in recent months, those moves weren't as potent as today's.

Wendy's, according to Redditors, has all the trimmings needed to attract meme energy: a well-known company in decline, shares at multi-decade lows, and elevated short interest—or what they called a "Classic Combo," referring to the restaurant's roughly $10-meal that comes with a sandwich, fries, and a beverage. (Some traders seek out heavily shorted stocks because buying in them lifts the price, triggering buying by people who were betting they would fall and who then seek to cut their losses.)

Today's move may signal a revival of risk-on energy, which took a breather of sorts earlier this week. Meme-stock enthusiasm often jumps from stock to stock.

Around this time last year, apparel retailer Kohl's (KSS) and online home buying website Opendoor (OPEN) were dubbed the new memes, joining those born during the pandemic GameStop (GME) and AMC Entertainment (AMC).