A Hidden Threat for Micron? Apple Is Eyeing a Fix for AI Memory Demands

Apple (NASDAQ: AAPL) precocious raised prices connected galore of its devices to offset rising representation prices, but it whitethorn person recovered a hole for soaring costs. A caller CNBC study said the institution is successful talks with an AI start-up that reduces on-device representation demands by 15x.

Squeezing vastly much representation processing capabilities from the aforesaid magnitude of representation could beryllium atrocious quality for Micron Technology (NASDAQ: MU). Here's what some Apple and Micron investors should know.

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Apple is trying to hole a stubborn occupation

Apple precocious accrued the prices of galore of its devices to support gait with soaring representation costs. Demand for representation chips has risen sharply arsenic tech giants proceed their monolithic build-out of AI information centers.

Apple wants to support the precocious margins it commands connected its products. To support them amid rising representation spot costs, it raised its machine prices by $200 oregon more. And it could summation iPhone prices for the aforesaid crushed aboriginal this year.

It's nary wonder, then, that Apple is connected the hunt for a hole for its representation problems. And it whitethorn person recovered it successful an AI start-up called PrismML. The institution says its exertion reduces representation usage for AI models by up to 15x portion delivering responses up to 8x faster.

There's nary factual woody oregon concern betwixt Apple and PrismML close now. Still, if Apple ends up utilizing the technology, oregon thing similar, it could assistance the institution present precocious on-device Siri AI features without adding much costly memory.

Tech companies are precise motivated to trim representation costs

Micron has enjoyed a surge successful request for representation for AI information centers, causing a shortage of representation processors. That shortage, successful turn, has allowed Micron to complaint much for its representation chips.

The effect has been soaring profits for Micron, with non-GAAP (generally accepted accounting principles) net per stock skyrocketing much than 1,200% to $25.11 per stock successful the 3rd 4th of 2026.

If PrismML and Apple (or different company) yet instrumentality exertion crossed tech devices that accrued ratio and reduces representation demand, it could endanger Micron's nett margins, which are presently astatine an enviable 74%.

Still, it's astir apt excessively aboriginal for investors to worry. For one, the exertion would person to beryllium implemented crossed a wide scope of devices from galore antithetic tech companies for it to interaction Micron's business.