jordan klein

By developing custom training chips, Amazon secures compute supply, lowers costs, and improves AWS margins, demonstrating a replicable model for hyperscalers to reduce Nvidia dependence.

Tim Cook indicated that even if memory chip supply improves, prices are not expected to decline, creating a structural headwind for hardware margins across the industry.

Tim Cook's admission that memory prices will remain elevated even as supply improves creates a structural margin headwind for Apple and potentially other device makers, with the iPhone 18 launch cycle now at risk of component shortages that could limit upside.