![\"A](\"https:\/\/www.europesays.com\/people\/wp-content\/uploads\/2026\/04\/501802170df93530ff3189d6d2985646.jpeg\")
Image source: Micron Technology. <\/p>\n
If I counted correctly, the word “memory” was mentioned 16 times during Apple’s Q1 earnings call. And the references weren’t about fond recollections of Apple’s history. Both analysts and Apple’s management discussed the ongoing supply demand imbalance in memory chips extensively.<\/p>\n
Cook said on the call that the robust demand for iPhones put Apple in “a supply chase mode” for memory. He added, “We are currently constrained, and at this point, it is difficult to predict when supply and demand will balance.”<\/p>\n
How have the supply constraints impacted Apple financially? Not very much, at least so far. Cook said that “memory had a minimal impact” on gross margins in Q1. However, he expects a greater impact in the second quarter.<\/p>\n
Anyone familiar with the law of supply and demand knows that prices rise when supply is limited and demand is strong. Unsurprisingly, Cook acknowledged that Apple expects memory prices to increase “significantly” beyond Q2.<\/p>\n
To be clear, Cook never mentioned Micron during Apple’s Q1 earnings call. Neither did anyone else. However, Cook’s cautionary words about supply constraints for memory translate into great news for Micron.<\/p>\n
Samsung remains Apple’s primary supplier of memory chips. SK Hynix is another top source for memory. But Citigroup (NYSE: C) estimates that Micron is supplying roughly 30% of DRAM and NAND chips for Apple’s iPhone 17. This share isn’t far behind the estimated 37% and 33% for Samsung and SK Hynix, respectively.<\/p>\n
The Korea Economic Daily reported last month that Apple has dispatched members of its purchasing team to hotels near Samsung’s and SK Hynix’s Korean manufacturing facilities to secure long-term memory contracts. If that sounds desperate, it is.<\/p>\n
However, Cook said something in the Q1 earnings call that shouldn’t be overlooked. He mentioned that Apple has “different levers that we can push” to respond to the memory supply constraints. It doesn’t require much reading between the lines to infer that one of those levers could be striking a deal that richly rewards Micron.<\/p>\n
If nothing else, Apple’s predicament underscores just how severe the memory shortage is for the tech industry. When the world’s second-largest tech company<\/a> is having issues getting the memory chips it needs, imagine what the challenges are for smaller companies. That puts Micron in a great position, especially given that it’s also selling all the high-bandwidth memory (HBM) it can make for use in GPUs and artificial intelligence (AI) accelerators.<\/p>\n You might think that an AI stock<\/a> that’s in the catbird seat as much as Micron is would trade at a steep premium. But that isn’t the case at all.<\/p>\n Micron’s forward price-to-earnings ratio is only 13.1. The stock’s price-to-earnings-to-growth (PEG) ratio, which incorporates analysts’ five-year earnings growth projections, is a low 0.73.<\/p>\n The tech stock has skyrocketed roughly 380% over the last 12 months. If you believe Wall Street, Micron’s momentum could evaporate. The consensus price target is 15% below the current share price. However, I believe Tim Cook more than I do Wall Street. The dynamics in the global memory market should continue to work in Micron’s favor. I predict this dirt cheap AI stock will soar even more in 2026.<\/p>\n Ever feel like you missed the boat in buying the most successful stocks? Then you\u2019ll want to hear this.<\/p>\n On rare occasions, our expert team of analysts issues a \u201cDouble Down\u201d stock<\/a> recommendation\u00a0for companies that they think are about to pop. If you\u2019re worried you\u2019ve already missed your chance to invest, now is the best time to buy before it\u2019s too late. And the numbers speak for themselves:<\/p>\n Nvidia:\u00a0if you invested $1,000 when we doubled down in 2009,\u00a0you\u2019d have $495,739!*<\/p>\n Apple: if you invested $1,000 when we doubled down in 2008, you\u2019d have $49,363!*<\/p>\n Netflix: if you invested $1,000 when we doubled down in 2004, you\u2019d have $450,256!*<\/p>\n Right now, we\u2019re issuing \u201cDouble Down\u201d alerts for three incredible companies, available when you join\u00a0Stock Advisor, and there may not be another chance like this anytime soon.<\/p>\n See the 3 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of February 2, 2026<\/p>\n Citigroup is an advertising partner of Motley Fool Money. Keith Speights<\/a> has positions in Apple. The Motley Fool has positions in and recommends Apple and Micron Technology. The Motley Fool has a disclosure policy<\/a>.<\/p>\n