Apple gets squeezed by rising memory costs while Micron rakes in cash — long Micron
Apple is getting hammered by Wall Street because it has to raise prices on its computers and tablets to cover the soaring cost of memory chips. But the same spike in memory prices is responsible for the massive, blowout profits at companies like Micron.
Idea
Micron just reported earnings showing AI demand is driving massive memory shortages, while Apple's stock fell because it has to raise consumer prices to cover those exact same memory costs. When a parts shortage gets bad enough to force a giant like Apple to hike prices and take a stock hit, the supplier reaping all the profits becomes a very attractive investment. The combination of surging supplier profits and consumer-goods stress suggests the market will keep rotating money away from companies like Apple and toward the memory makers like Micron and Western Digital.