The AI boom is helping Samsung and coming for Apple

Core Viewpoint - The global AI build-out is causing a significant memory shortage, impacting various tech sectors, but Samsung is benefiting from this situation by raising prices on its next-generation HBM4 chips by up to 30% [1]. Group 1: Samsung's Position - Samsung's stock has reached an all-time high due to its ability to leverage the chip shortage for price increases [1]. - The company may face increased costs for its flagship smartphones, potentially raising prices by $70 to $140 to cover silicon costs [2]. Group 2: Impact on Apple - Apple relies on Samsung for approximately 60% of its memory components and is expected to face margin pressures due to the memory shortage [3]. - While Apple may initially try to maintain prices to gain market share, it is likely to implement its own price increases to protect margins [3]. Group 3: Industry Sentiment - The rise in memory pricing is negatively impacting sentiment across the IT hardware sector, with some industry participants referring to the situation as "RAMageddon" [4]. - Companies like Dell have already raised PC prices by up to 20% due to increased costs from the memory shortage [6]. Group 4: Broader Industry Effects - The demand for memory chips is affecting the availability of chips for smartphones, PCs, and gaming consoles, leading to potential delays in product releases, such as the PlayStation 6 [6]. - The AI boom is expected to impose a lasting "hardware tax" on future smartphone upgrades if current market trends persist [7].