Data: U.S. Bureau of Labor Statistics via FRED ; Chart: Emily Peck/Axios Memory chip prices are skyrocketing, thanks to AI demand, and there's no end in sight. Why it matters: "Chipflation" is pushing up the prices for electronic goods like smartphones and laptops, as well as the costs for cloud storage and hardware — it also helps explain the eye-popping ascents in semiconductor stock prices. - While the overall effect on inflation may not be huge — other kinds of products get more weight in the government's measure of consumer prices — the scale of this boom is unprecedented. By the numbers: The Producer Price Index for electronic components and accessories, which measures what companies pay for semiconductor chips and other…
Microsoft dropped 10%, shedding more than $350 billion in market value after its cloud business failed to impress, while Meta gained 10%.
AI:Microsoft’s market value cratered by over $350 billion following a massive 10% plunge triggered by lackluster performance in its cloud sector, signaling a major reality check for tech giants relying heavily on AI hype rather than tangible returns. While investors punished Microsoft for failing to meet expectations, Meta managed to rally with a 10% surge as capital began shifting toward companies capable of delivering actual profitability from their artificial intelligence investments. This market volatility underscores the growing demand for immediate payoffs and exposes the fragility of valuations built on speculative technology spending.Open