According to a Wall Street Journal report, Apple (AAPL) has begun testing memory chips from China’s ChangXin Memory Technologies (CXMT). The company is testing the memory chips across its iPhone and MacBook lineup. According to the report, the tests are a move to counter memory shortages due to the ongoing AI boom. Let’s discuss what’s going on and if Apple’s (AAPL) stock price will take a hit.
Will Apple Stock Take a Hit After Testing Memory Chips From Banned Chinese Firms?
According to the report Apple (AAPL) held early talks with ChangXin Memory Technologies (CXMT) about using some of their components in some devices sold in China. Given that the ChangXin Memory Technologies components may only be sold to Chinese customers, the move may not put Apple in a pickle just yet. However, there could be repercussions from US authorities. Things are not fully clear just yet.
The memory shortage has caused substantial pricing issues for consumer electronics. Apple recently hiked prices for most of its product line in light of the memory shortage. The AI boom has led to a massive chip supply shortage. Data centers and AI chips have eaten up the market and consumers are the ones suffering.
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Apple (AAPL) briefly overtook Nvidia (NVDA) to become the most valuable company in the world. Apple’s valuation has since dipped and is currently the second most valuable company in the world with a market capitalization of $4.57 trillion. China’s ChangXin Memory Technologies (CXMT), meanwhile, had one of the biggest public debuts in Chinese history. The company is China’s largest chipmaker by market value and is expected to bring substantial competition to industry giants, such as SK Hynix, Samsung, and Micron. Apple’s talks with ChangXin Memory Technologies is understandable given the current situation, but the complete picture is still unclear.
