How could the valuation divide between HP and Apple affect Micron Technology?
Apple's premium valuation may sustain high demand for Micron's memory chips Apple's Mac revenues jumped 28.7% year-over-year to $10.35 billion in the third quarter of fiscal 2026, driven by demand for the MacBook Neo and MacBook Pro. This strong hardware demand, coupled with Apple's overall ecosystem strength, requires a continuous supply of critical memory chips. Micron Technology is a critical supplier of these memory chips (DRAM/NAND) essential for Apple's products, meaning Apple's sustained high demand could support Micron's market position.
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How it reaches Micron Technology
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HP Inc. trades at a forward price-to-sales multiple of 0.48X, while Apple Inc. commands a premium 9.55X, creating one of the starkest valuation divides in the technology hardware sector. Despite unit shipments falling 15.8% in the third quarter of fiscal 2026, HP Inc.'s Personal Systems division posted $11.77 billion in revenue, driven by a 40.8% increase in average selling prices.
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Apple's strong performance is supported by hardware demand, such as Mac revenues jumping 28.7% year-over-year to $10.35 billion. Since Micron Technology is a critical supplier of memory chips (DRAM/NAND) essential for Apple's products, this sustained hardware demand creates a high-stakes, interdependent supply chain.
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American multinational corporation based in Boise, Idaho
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The facts so far
As reported. Each one links to where it comes from.
- Apple Inc. commands a premium 9.55X forward price-to-sales multiple, while HP Inc. trades at 0.48X.foreignpolicyjournal.com
- Apple's services engine generated $30.74 billion in quarterly revenue during the third quarter of fiscal 2026.foreignpolicyjournal.com
- Mac revenues jumped 28.7% year-over-year to $10.35 billion in the third quarter of fiscal 2026.foreignpolicyjournal.com
Why it matters
For Micron Technology, the relationship with Apple is foundational. As a critical supplier of memory chips, Micron's revenue stability and growth are heavily tied to the demand generated by Apple's product cycles and market strength. Apple's ability to maintain a premium valuation suggests its underlying business model is resilient, which translates into sustained, high-stakes demand for components like DRAM and NAND.
This dynamic is part of a broader, interdependent supply chain within the technology hardware sector. While the valuation divide focuses on the consumer-facing companies, the health of the entire ecosystem, including critical component manufacturers like Micron, is determined by the sustained purchasing power and innovation cycles of the major tech giants.
What we don't know yet
- Will Apple's supply constraints impact its ability to maintain high demand for memory chips?
- How will the increasing focus on AI-capable PCs affect the demand for memory chips from both Apple and HP Inc.?
What would change this answer
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Reporting
- foreignpolicyjournal.comThursday
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.