Apple’s Price Hikes Are Coming — Traders Need to Know Why

**SPEAKER_1** (0:00)
We glossed over a little bit, I think maybe we touched on it for a second, the fact that they are going to increase their prices for the GPUs by 15%.
Obviously, direct correlation to the memory story. We talk about memory so much. Thoughts around that, because we saw memory take a bit of a hit today. Outlook on the memory story. You give your thoughts, I got mine for sure.

**SPEAKER_2** (0:24)
I think it's smart to increase the prices, it's too valuable. And now, for the first time in a long time, the memory sector is in polled position to make the decision. So much so, as we eluded to, Apple doesn't even get to dictate price anymore.
The memory company that used to be the supplier was looked at as a little brother, and now we take a polled position, because you didn't invest your free cash flow or operation cash flow to buy, like, not to beat up on Apple, because I love everyone at HQ.
But look at what they could have potentially bought with open AI, Anthropic, Micron, Sandisk, because it was spun off. Hell, Intel, you didn't do any of it. So, the costs are always going to be passed off to the consumer, and everyone who keeps calling for the death of the memory tray in one frame or another, I'm going to keep saying it, you are only saying it because you didn't get into it. Same with NVIDIA. Like, when I called NVIDIA and it took off, they're like, oh, it has remnants of Vimron. I'm like, yeah, because you didn't invest in it. That's the only reason why. So do I see a potential for it to pull back maybe to 830 if something bad happens or 809 or worse? Sure. Do I think we'll get back to 1200 within 12 months? For sure.

**SPEAKER_1** (1:45)
For sure.

**SPEAKER_2** (1:46)
There's no money in being a perma bear. What are your thoughts?

**SPEAKER_1** (1:51)
I think two things happened this weekend that made me, I mean, I'm already bullish. Everybody knows that. I've been in the story for so long that, yeah, of course, I'm a bull when it comes to the memory sector.
I think the Tim Cook quote was pretty telling in terms of them having to figure out if they're going to try to use Chinese memory products to help offset some costs. And him conceding and saying, Macron is an American leader in memory and we're going to continue to support that.

**SPEAKER_2** (2:22)
Yeah, but how do we even do that? Like, we're fighting a geopolitical technological war.

**SPEAKER_1** (2:27)
The fact that he was testing it was just like alarming in itself.

**SPEAKER_2** (2:30)
Like, bro, what?

**SPEAKER_1** (2:31)
Yeah. I mean, the administration, I couldn't see them allowing it anyway, but-

**SPEAKER_2** (2:34)
Oh, they're not.

**SPEAKER_1** (2:35)
Yeah, they're not, right?

**SPEAKER_2** (2:36)
Sure, I'll make that call.

**SPEAKER_1** (2:38)
That's the first sign. And then the next day, Jensen saying we're going to increase our GPU price by 15 percent, is also another bullish flag.
Because they could have said, hey, maybe we'll try to create infrastructure that they've done in other sectors and said, hey, maybe we find a cheaper way to do it. And I'm sure companies out there that are looking to create forms of memory that will be more sustainable at cheaper prices. But until that point, and that'll take three to five years.

**SPEAKER_2** (3:09)
Just gonna take some time.

**SPEAKER_1** (3:10)
Minimum. Until that time, this story is equally as important as the GPU.
We saw Sanjay speak on CNBC, and he echoed the same exact words. This is as strong of a story as the GPU, because none of this works if it can't remember.

**SPEAKER_2** (3:29)
Yeah.

**SPEAKER_1** (3:29)
The AI can't get better if it can't remember.
Simply put, he said AI can't get better if it can't remember, if it can't learn, if it can't train. In order to do that, you're going to need memory. And so that's the fair indication that says like, this is still very much a bullish sector. You know, I went deep in the research on it. This guy's a legend.

**SPEAKER_2** (3:53)
Who, Sandra?

**SPEAKER_1** (3:54)
A legend. What?

**SPEAKER_2** (3:55)
Yeah.

**SPEAKER_1** (3:57)
So he's a CEO of Micron. You know the other company he created?
He's the creator and founder of Sandis. Left in 2016 to take Micron. And now look at what those companies are doing. Think about the conviction he's had for this sector, from a NAND standpoint, and now from a high bandwidth standpoint, and where that is going to lead over the next five to 10 years. That's pretty legendary shit.