Happy Friday, investors. Memory chips are rewriting the Big Tech leaderboard. Apple shed a hundreds of billions in market cap for the same catalyst that fueled Micron’s record-breaking quarter.

Here we go.

Micron is getting rich for the same reason Apple and Microsoft are raising prices on their most popular products.

The AI boom is driving a memory shortage beyond anything the world has ever faced.

That’s pushed the share prices of chipmakers Micron and SK Hynix to stratospheric levels while leaving a higher bill for the companies making or buying technology products.

Micron on Wednesday reported quadrupling revenue to $41.5 billion in the quarter, while raising its forecast for $50 billion in the next quarter.

But as the stock rallied double-digits and Wall Street analysts raised their price targets, Apple and Microsoft tumbled after breaking news of their own.

Apple confirmed that price increases will come to its iPads and Macbooks due to soaring memory costs, with early estimates adding 15-25% across a range of products.

Microsoft followed that by raising prices on its Xbox consoles between $100 and $500.

That means, in a round-about way, consumers will pay the price as corporations scramble to compete in the AI race and push the bounds of new technology.

As hyperscalers and governments pour money into data centers and strategic initiatives around AI, the demand for memory will only intensify.

Every chip placed in an AI server is one that never reaches the phone or laptop that shows up in stores for consumers to purchase for themselves.

On one hand, that suggests the bull case for Micron, SK Hynix, and other chip stocks will continue for some time.

These companies are right to capitalize on the supply shortage.

Indeed, Micron revealed in its earnings release that it’s already booked $100 billion in multi-year contracts, and that AI memory is sold out into 2028.

And while that’s reassuring news for shareholders, it’s one more sign that the AI boom will not be limited to a data center buildout in faraway lands.

The bill will come due with your next smartphone purchase.

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📊 PCE inflation crossed 4% for the first time in 3 years. The Fed's preferred gauge hit 4.1% in May with core at 3.4%, the hottest reading since April 2023 but matching economist expectations. (Quartz)

🛢 Oil is erasing its war-fueled gains with Strait of Hormuz tanker traffic resuming. Brent futures fell 1.3% to $72.75 as ships stranded in the Persian Gulf began transiting again, easing the supply premium baked in during the Iran conflict. (CNBC)

🏦 JPMorgan named Doug Petno and Troy Rohrbaugh co-presidents. Veteran executive Marianne Lake retired after 25 years after long being floated as a successor to Jamie Dimon. (Yahoo Finance)

I sat down with Gunjan Banerji, a leading financial reporter at The Wall Street Journal, to discuss the tech volatility, AI vs. dot-com comparisons, what options market data is signaling, using AI to manage a portfolio and lessons about wealth from billionaires.

Tune in on Spotify, Apple Podcasts, or YouTube — and please leave a review if you enjoy the podcast!

🗓 June 26, 1934: President Franklin Roosevelt signed the Federal Credit Union Act into law, authorizing federally chartered credit unions across all 50 states.

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