An analyst warns that memory chip demand will continue to outpace supply in the near term, pushing costs higher even for mega-cap customers like Apple. Micron's revenue surged 48.9% YoY to $37.4B with gross margins near 40%, suggesting pricing power that could pressure AAPL's hardware margins.
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The AngleGenuinely two-sided
Bull caseAAPL
MU's 48.9% revenue growth and nearly 40% gross margins, sustained into a period of rising AI-driven HBM demand, support further earnings estimate revisions higher that the current price may not fully reflect.
Bear caseAAPL
Memory cycles are notoriously mean-reverting, and the analyst warning itself signals the market is already aware of the supply/demand imbalance — much of MU's upcycle may already be priced in after a strong FY2025 print.
Both sides — weigh them yourself