Viewpoint: Micron's net profit is expected to surpass Apple's in the next quarter, and capacity expansion will eventually bring about a supply-demand reversal BlockBeats News: On July 1st, Charlie Bilello, Chief Market Strategist of Creative Planning, stated in a post that the strong demand for high bandwidth memory from AI is disrupting the power structure of the technology industry chain. Charlie visually presented this transformation using a set of net profit comparison data: Micron's net profit increased 15 times within a year to approximately $28 billion, and is expected to surpass Apple's approximately $29.6 billion in the next quarter. For a long time, Apple has had absolute pricing power over suppliers due to its strong brand position, but in the face of a shortage of AI driven key components, even the strongest consumer brands have had to accept the price settings of memory manufacturers. Bilello cites classic economic principles to remind us that 'the cure for high prices is high prices', and this imbalance will not last forever. High profits will ultimately stimulate capacity expansion. Micron has been hovering around the breakeven line for a long time, with profits sharply rising in the past two years due to the outbreak of AI, while Apple still maintains a high level but with gentle fluctuations. The essence of this power transfer is that the massive demand for HBM and DRAM from AI servers occupies the production capacity and bargaining space of memory manufacturers, forcing terminal device brands to bear cost transmission. The market's pricing for this is equally rational - despite Micron's skyrocketing profits, its valuation multiple is still much lower than Apple's, as investors are well aware of the strong cyclicality of the memory industry, and high profits often indicate the risk of future capital expenditure waves and supply and demand reversals. [Original link]