Asian technology stocks slumped on Thursday after Apple and Microsoft’s Xbox raised prices on consumer devices, citing a global shortage of memory chips fueled by AI infrastructure demands. Apple increased MacBook and iPad prices by up to 20% worldwide, while Xbox raised prices by as much as $150. The moves sent shockwaves through markets, with investors locking in profits after a recent AI-driven rally, Reuters and Bloomberg reported.
This marks the clearest sign yet that the AI boom, long a boon for semiconductor stocks, is now hitting consumers’ wallets directly. The price hikes underscore how surging demand for chips in AI data centers is constraining supply of memory and storage components used in everyday electronics. Wednesday's Apple and Xbox announcements together represent a turning point in the narrative that AI growth comes without tangible costs for ordinary buyers.
South Korean markets, heavily weighted toward chipmakers, were particularly hard hit. The KOSPI index fell sharply, with some analysts calling it a canary in the coal mine for tech stocks. Bloomberg noted that Asian shares plunged as traders sold to lock in gains, driven by concerns that rising component costs will ultimately weaken consumer demand and slow the memory chip rally that has powered much of the AI trade.
The selloff suggests the AI trade is splitting into winners and losers, as earlier this week's stock moves showed the rally was no longer a single bet, according to a Bloomberg newsletter. Analysts now watch whether the price hikes dampen device sales, which could in turn reduce chip orders, creating a feedback loop. Wedbush analyst Dan Ives called the developments a key test for AI’s broader market impact.
Still, some argue the market reaction may be overblown. The memory chip shortage could be transient as new fabrication capacity comes online, and AI-related demand for enterprise chips remains robust. Yet the day’s events are the strongest evidence yet that the costs of AI infrastructure are migrating from data centers to consumer pocketbooks.