Micron Profits and Apple Prices Reveal AI’s Hidden Inflation Problem

While AI is expected to boost productivity and lower inflation long-term, the massive investment boom in AI infrastructure is creating near-term inflationary pressures. Micron's strong earnings reflect surging demand for advanced chips, but this has caused memory costs to spike, forcing Apple to raise prices on Mac and iPad models. The article warns that major structural shifts like AI create bottlenecks and pricing pressures before supply catches up, complicating the Federal Reserve's inflation outlook.