Apple dropped approximately 6% amid reports of an extreme memory-cost spike — described in trading circles as a 'hundred-year flood' event — while Micron Technology rallied sharply as the primary beneficiary of surging DRAM and NAND pricing. The framing suggests this is not a routine supply-demand oscillation but a more acute, structural dislocation in memory markets.

For Micron, the setup is compelling on the numbers: revenue grew 48.9% year-over-year to $37.4B with gross margins already recovering to 39.8%, and a sharp memory-price spike would accelerate both the top line and margin expansion into the next print. For Apple, the pain is more nuanced — at $416.2B in revenue with 46.9% gross margins, the company has cushion, but memory is a significant cost input across iPhone, Mac, and iPad, and even a modest margin compression on hardware would be visible given analyst scrutiny.

The pair trade here is long MU / short AAPL, betting that memory pricing stays elevated long enough to show up in Micron's next earnings while Apple guides conservatively on input costs. The bull case for MU rests on the cycle having definitively turned — 48.9% revenue growth and rising ASPs suggest momentum — while the bear case is that memory spikes historically mean-revert sharply, and Micron's own capex ramp could accelerate supply recovery faster than the market expects.

For AAPL bears, the key watch is whether Cook's team signals margin pressure in the next earnings call or pre-announcement. Apple has historically managed supply costs through long-term contracts and supplier diversification, which could soften the blow more than the initial 6% selloff implies. The honest tension: this could be a genuine margin headwind for Apple or an overreaction to a temporary spike that Apple's procurement scale absorbs quickly.