Apple's Push For Chinese Memory Chips Isn't The Micron Threat Investors Think It Is, Analyst Says: 5 Reas

Fears that Apple Inc.'s (NASDAQ:AAPL) reported efforts to source cheaper memory chips from China's largest DRAM maker could hurt Micron Technology Inc.

(NASDAQ:MU) may be overblown, according to one AI-focused market analyst, who argues the move has little bearing on Micron's biggest growth driver: high-bandwidth memory for artificial intelligence.

Why The Apple-CXMT Fears May Be Overblown In a post on X, Milk Road AI analyst Melvin said investors are focusing on the wrong part of the memory market.

While Apple's potential use of chips from China's ChangXin Memory Technologies (CXMT) could pressure commodity DRAM suppliers, he argued Micron has largely shifted its focus to premium HBM products powering AI data centers, where CXMT remains years behind.

Melvin said that the market segment CXMT serves is dominated by commodity products such as DDR4, DDR5, and LPDDR chips used in phones, PCs, and other consumer devices.