AI Memory Chips Spark Inflation Worries

Apple and other major tech companies are raising prices on computers and devices due to a global shortage of AI memory chips (DRAM and NAND), marking an unprecedented component cost increase. This reverses decades of deflationary pressure in the IT sector, though the impact may be offset by reduced consumer spending on other products. Meanwhile, quarter-end rebalancing trades have caused significant rotation between mega-cap growth and value stocks.