Did Apple just signal a bottom in momentum-driven memory chip stocks?

July 31, 2026 - 21:03

LPL Financial strategist Adam Turnquist says investors might see a silver lining in Apple's recent remarks about memory chip prices. The tech giant's commentary, which touched on the cost of these components, could be a sign that the recent slide in chip stocks has gone too far. Turnquist suggests that those looking for a bottom in the momentum-driven semiconductor trade may find reason for optimism in Apple's words.

The connection is simple. When a major buyer like Apple talks about memory prices, it offers a glimpse into real demand and supply dynamics. If Apple is signaling that prices are stabilizing or even rising, that could ease fears of a glut that has been weighing on chipmaker shares. The sell-off in this sector has been sharp, driven by worries about inventory buildup and a potential slowdown in spending on AI infrastructure.

Turnquist's point is not that Apple's comments guarantee a turnaround. Rather, he argues that the market may have already priced in the worst-case scenario. If the worst fears about memory pricing do not materialize, then the current valuations for chip stocks could look attractive. This line of thinking is gaining traction among some investors who see the recent drop as more of a correction than the start of a long-term decline.

Still, the debate is far from settled. Some analysts remain cautious, pointing out that one company's view on pricing does not speak for the entire industry. The memory chip market is notoriously cyclical, and past recoveries have been uneven. For now, Apple's comments have given the bulls a fresh argument, but whether that is enough to halt the sell-off remains to be seen. The next few weeks of earnings reports from major chipmakers will likely provide more clarity.