{"id":760440,"date":"2026-06-26T00:30:12","date_gmt":"2026-06-26T00:30:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/760440\/"},"modified":"2026-06-26T00:30:12","modified_gmt":"2026-06-26T00:30:12","slug":"micron-profits-apple-prices-ai-boom-fuelling-new-inflation-threat","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/760440\/","title":{"rendered":"Micron Profits, Apple Prices: AI boom fuelling new inflation threat"},"content":{"rendered":"<p>Micron\u2019s blockbuster earnings and Apple\u2019s decision to raise prices because of soaring memory costs point to a powerful new force shaping the US economy: the AI boom is beginning to generate fresh inflationary pressures, warns the CEO of global financial advisory giant <a href=\"https:\/\/email.cisionone.cision.com\/c\/eJwszE1uwyAQxfHTwA5r-DDgBYtIVa4RATM0NLGdYMdcv3LV7f-n9zAonw1wCtJ5ZQBgsvwe0CdXyjjlrKVCFx2MEpS3FsFooMJrsFGjMaOUWlG6SYlp8tIYiMAMbBXpUd9ijvVJbRPOZhx9mrwR-NMXO5zAn-G-76-N6QtTV6auvfcB6aBG4rutn9eQ1_kUfT0qdaa_SnzzmbBG0ehJcSNRMfyF239g-qLBWet5C3UpKzNQ6rJQ3xba-9oe5-cQP3zbG9F87jHKMWlwYlIShXHZiZh9EjpZl7Whkm3kR1C_AQAA___cYFv3\" rel=\"nofollow noopener\" target=\"_blank\">deVere Group<\/a>.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>The warning from Nigel Green comes as Micron\u2019s stronger-than-expected quarterly results sent semiconductor stocks sharply higher, helping lift the S&amp;P 500, Nasdaq and Dow, while the Federal Reserve\u2019s preferred inflation gauge accelerated to 4.1% in May, its highest annual reading in three years.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Apple\u2019s decision to increase prices on selected Mac and iPad models after AI-driven demand pushed memory costs sharply higher has added another dimension to the inflation debate.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>He says: \u201cMarkets are celebrating Micron\u2019s exceptional figures, and rightly so. But investors should also pay attention to Apple\u2019s price increases because both stories point to the same conclusion: AI is no longer only creating wealth, it\u2019s beginning to create inflation.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cMicron tells us where the profits are. Apple tells us where the inflation is.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cThe race to build AI infrastructure has become so intense that demand for advanced memory is outstripping supply.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cPricing power is strengthening across the semiconductor industry, and those costs are beginning to flow through to consumers.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cApple\u2019s decision to raise prices is an early warning that inflation is finding a new route into the economy.\u201d<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Nigel Green continues: \u201cFor years the assumption has been that AI would lower inflation by making businesses more productive. Long term, I still expect that to happen.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cBut first we\u2019re likely to experience the opposite effect.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cCompanies are investing hundreds of billions of dollars in AI infrastructure. Data centres are competing with laptops, tablets and smartphones for the same advanced components. Supply tightens, prices rise and consumers eventually pay more.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cInflation doesn\u2019t always begin with oil or wages. Sometimes it starts with success.\u201d<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>He says today\u2019s inflation report and today\u2019s corporate earnings are reinforcing the same economic message.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cToday\u2019s inflation report and today\u2019s earnings report are two sides of the same coin. Both tell us the US economy remains exceptionally strong.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cConsumer spending is holding up. The labour market remains resilient. AI investment continues to accelerate, and corporate America is delivering exceptional profits.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cThose are not conditions that normally justify lower interest rates.\u201d<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>The deVere CEO explains the market\u2019s view of monetary policy has shifted dramatically.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cEarlier this year investors expected several Federal Reserve rate cuts.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cThe confidence has faded quickly.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cThe bigger question today is no longer how soon rates come down. It\u2019s how long they stay restrictive if inflation refuses to retreat.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cMarkets may be celebrating today\u2019s earnings, but policymakers will be studying today\u2019s inflation data just as closely.\u201d<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>He believes investors should enjoy the rally without losing sight of the broader macroeconomic picture.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cMicron deserves every headline it receives today. But, of course, one company\u2019s outstanding earnings don\u2019t tell the whole story.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cAn economy producing inflation above 4%, record AI investment, resilient consumer demand and companies passing higher costs on to customers raises an obvious question.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cIs the economy becoming too hot?<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cThe Fed\u2019s job is to keep inflation under control, not to support stock market rallies.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cIf demand continues to exceed supply across critical industries while inflation remains elevated, there will be little pressure on policymakers to loosen monetary policy.\u201d<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>Nigel Green concludes: \u201cMarkets are celebrating Micron. The Fed will be paying much closer attention to Apple.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cOne reflects extraordinary corporate success. The other shows inflation is finding another way into the economy.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u201cInvestors who understand both will be far better positioned for what comes next.\u201d<\/p>\n<p>&#13;<br \/>\n\t\t\t\t Post Views: 7&#13;\n\t\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"Micron\u2019s blockbuster earnings and Apple\u2019s decision to raise prices because of soaring memory costs point to a powerful&hellip;\n","protected":false},"author":2,"featured_media":760441,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-760440","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/760440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=760440"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/760440\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/760441"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=760440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=760440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=760440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}