A Hidden Threat for Micron? Apple Is Eyeing a Fix for AI Memory Demands
Chris Neiger, The Motley Fool
Sun, July 19, 2026 at 11:05 PM GMT+5:30
4 min read
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Apple (NASDAQ: AAPL) recently raised prices on many of its devices to offset rising memory prices, but it may have found a fix for soaring costs. A recent CNBC report said the company is in talks with an AI start-up that reduces on-device memory demands by 15x
Squeezing vastly more memory processing capabilities from the same amount of memory could be bad news for Micron Technology (NASDAQ: MU). Here’s what both Apple and Micron investors should know
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Apple is trying to fix a stubborn problem
Apple recently increased the prices of many of its devices to keep pace with soaring memory costs. Demand for memory chips has risen sharply as tech giants continue their massive build-out of AI data centers
Apple wants to keep the high margins it commands on its products. To maintain them amid rising memory chip costs, it raised its computer prices by $200 or more. And it could increase iPhone prices for the same reason later this year
It’s no wonder, then, that Apple is on the hunt for a fix for its memory problems. And it may have found it in an AI start-up called PrismML. The company says its technology reduces memory usage for AI models by up to 15x while delivering responses up to 8x faster
There’s no concrete deal or partnership between Apple and PrismML right now. Still, if Apple ends up using the technology, or something similar, it could help the company deliver advanced on-device Siri AI features without adding more expensive memory
Tech companies are very motivated to reduce memory costs
Micron has enjoyed a surge in demand for memory for AI data centers, causing a shortage of memory processors. That shortage, in turn, has allowed Micron to charge more for its memory chips
The result has been soaring profits for Micron, with non-GAAP (generally accepted accounting principles) earnings per share skyrocketing more than 1,200% to $25.11 per share in the third quarter of 2026
If PrismML and Apple (or another company) eventually implement technology across tech devices that increased efficiency and reduces memory demand, it could threaten Micron’s profit margins, which are currently at an en
Still, it’s probably too early for investors to worry. For one, the technology would have to be implemented across a wide range of devices from many different tech companies for it to impact Micron’s business
