Microsoft and Meta shares rise as markets signal resistance to 4x memory chip price hikes amid AI infrastructure buildout.
Nasdaq gains reflect growing pushback from hyperscalers against soaring memory chip prices, with Micron’s recent quarter highlighting supply constraints. Prices for critical components have surged up to four times, squeezing margins for AI infrastructure builders.
The tug-of-war between AI check writers and suppliers has intensified this month, with hyperscalers like Microsoft and Meta leading potential pivots. Analysts suggest a slowdown in buildout or margin concessions from suppliers could restore balance.
Shares of Microsoft and Meta climbed 4.8% and 2.4%, respectively, while Micron fell 3.9% and semiconductor ETFs dropped 4.8%. Amazon also rose 2.4%, benefiting from its diversified business model.