Potential Data Center Moratoriums May Mitigate Memory Chip Cost Pressures for Apple
Apple (AAPL) has warned investors that its gross margins are expected to contract in the coming quarter and remain under pressure through next year. This decline is primarily driven by soaring prices for memory chips, which have been inflated by massive demand from AI data center spending. Because high-bandwidth memory used in AI accelerators shares components with the DRAM found in iPhones and MacBooks, Apple's component costs have risen significantly. However, recent political shifts may offer relief. With Democrats taking control of both houses of Congress and Democratic governors set to take office in key states like Texas, Ohio, Georgia, and Arizona, there is an increasing likelihood of regulatory oversight or moratoriums on new data center construction. If these regulations delay the build-out of AI infrastructure, demand for high-bandwidth memory could stabilize, easing pricing pressures on Apple's supply chain.
Topics: AI demand earnings report gross margin contraction memory chip pricing supply chain