Micron Jumps 15.7% as US Stocks Finish Mixed on Big Tech AI Spending Concerns

US stocks ended mixed on June 25 despite gains in semiconductor shares. Micron Technology Inc.'s strong earnings stoked expectations for further expansion in AI spending, but large technology stocks came under pressure as investors focused on the cost of building out AI infrastructure.

The Dow Jones Industrial Average rose 0.14% to 51,920.62. The S&P 500 slipped 0.01% to 7,357.49, while the Nasdaq Composite fell 0.46% to 25,358.60.

Stocks opened higher before surrendering gains, led by technology shares, as the cost of expanding AI investment became the market's main focus. Investors homed in on a split dynamic: rising AI demand is a tailwind for chipmakers, but the heavy infrastructure spending needed to support it could erode profitability at big tech companies.

The divide was evident in individual stocks. Apple Inc. plunged 6.1% after announcing plans to raise iPad and MacBook prices in response to higher semiconductor prices for memory and storage devices. Nvidia Corp., Microsoft Corp. and Alphabet Inc. also fell, down between 0.5% and 3.5%.

Semiconductor shares, by contrast, continued to climb. Micron surged 15.7% after reporting quarterly results and an outlook that beat market expectations. SanDisk jumped 22%, while Qualcomm Inc., Western Digital Corp. and Seagate Technology Holdings Plc also rose.

"A strong result from one company ultimately means someone else is paying the bill," Carol Schleif, chief investment officer at BMO Family Office, said. Micron's strong earnings also reflect rising costs for its customers, she added.

Economic data reinforced signs of resilience in the US economy. US inflation in May topped 4% for the first time in three years because of energy prices, while final first-quarter gross domestic product growth was 2.1%, above the earlier estimate of 1.6%. Jobless claims also fell more than expected, pointing to continued labor-market strength.

"Inflation came in high, as expected, but it was not at a level the market had feared," Schleif said. Given the recent drop in oil prices, inflation pressures could ease in the summer and fall, she said.

Investors are now watching whether the divergence between semiconductor stocks and big tech will persist as AI investment expands. Demand tied to AI is boosting chipmakers' earnings, while the spending required to support that demand is weighing on platform companies and splitting investor sentiment.