New York, June 25, 2026, 16:08 (EDT) — The Nasdaq Composite extended its losing streak to four sessions on Thursday, while the Dow Jones Industrial Average managed a modest gain, as a clear divergence emerged between AI chipmakers and the device companies that buy their components. The tech-heavy index fell 0.46%, or 118.03 points, to close at 25,358.60, while the Dow rose 71.72 points, or 0.14%, to 51,920.62. The S&P 500 was essentially flat, slipping just 0.73 point to 7,357.49.
Memory makers lead the charge
Memory-chip stocks dominated the S&P 500's gainers list, led by SanDisk Corp (NASDAQ:SNDK), which surged 22.0%. Micron Technology Inc (NASDAQ:MU) jumped 15.7% after announcing $22 billion in customer commitments for memory-chip supply, signaling persistent tightness in the market. Applied Materials Inc (NASDAQ:AMAT) rose 13.4%. Micron CEO Sanjay Mehrotra indicated that these "tight conditions" could persist beyond 2027, underscoring the pricing power enjoyed by semiconductor suppliers.
"Continued tightness supports pricing for players up and down the AI chain," said Ben Barringer of Quilter Cheviot, as quoted by Reuters. The rally in memory stocks reflects strong demand from hyperscale data-center operators and AI developers, who are locking in supply agreements well into the future.
Device makers feel the pinch
On the other side of the AI trade, companies that incorporate memory chips into their products faced margin pressure. Apple Inc (NASDAQ:AAPL) dropped 6.12% to $275.15 after raising prices on iPads and MacBooks. The base price of the MacBook Neo increased to $699 from $599. Apple management noted they had "never seen a component price increase this much, this quickly," following CEO Tim Cook's warning in April about "significantly higher memory costs." Dell Technologies Inc (NYSE:DELL) fell 5.8% as similar cost pressures weighed on the PC maker.
"One company's blowout earnings and revenues mean someone else is paying the price," said Carol Schleif, chief investment officer at BMO Family Office. The divergence underscores a fundamental shift in the AI trade, as investors reassess which segments of the supply chain capture the most value.
Qualcomm targets diversification
Qualcomm Inc (NASDAQ:QCOM) added to the supplier-side narrative, announcing plans to target $15 billion in data-center sales by 2029 and $40 billion in chip sales from outside smartphones — far above its previous $22 billion goal. "We will be truly diversified," said Chief Financial Officer Akash Palkhiwala. The company revealed that Microsoft Corp (NASDAQ:MSFT) and Meta Platforms Inc (NASDAQ:META) plan to use its new AI chips, highlighting the broadening demand for alternative AI processors.
Broader market and economic data
Despite the tech weakness, six of the 11 S&P 500 sectors gained, with industrials adding 1.9%. Advancers led decliners by a 1.48-to-1 ratio on the NYSE and 1.02-to-1 on the Nasdaq. The so-called Magnificent Seven group of mega-cap tech stocks has shed $2.99 trillion in market value in June, pulling their combined valuation to $20.8 trillion, according to Dow Jones Market Data.
On the economic front, the Bureau of Economic Analysis reported that the PCE price index rose 4.1% in May from a year earlier, accelerating from April's 3.8% pace. The first-quarter GDP growth was revised down to a 2.1% annualized rate. The elevated inflation reading keeps pressure on the Federal Reserve to maintain a hawkish stance, which could further weigh on high-growth tech stocks.
"Long-duration assets are going to sell off," warned Marc Dizard, chief investment officer at Huntington Bank, noting that the valuation gap between tech and the rest of the S&P 500 is about 2.8 standard deviations from the average.
Oil prices rose, with Brent crude up 2% to $75.36 a barrel, though still below recent highs following geopolitical tensions. The 10-year Treasury yield edged lower to 4.39% from 4.41% late Wednesday. "As long as gasoline prices trend lower, inflation expectations will likely follow suit," said Brian Jacobsen, chief economist at Annex Wealth Management.
The Nasdaq recorded 201 stocks hitting new highs and 204 touching new lows, while the S&P 500 saw 52 names at 52-week highs and 15 at new lows.
