👾💾 Memory Chip Prices Explode

Jun 29, 2026

Hi all!

I am writing to you from Stavanger Norway where it’s 10:30PM and the sun still hasn’t set yet. I’m taking just the week off to go on this trip, and it’s definitely a bucket list destination for me. We are going to Oslo tomorrow and then to a town called Alesund on Wednesday. Main things on my itinerary are catching a Norway World Cup game in Oslo, and going to Geirangerfjord, one of the famous fjords that had infamously been my desktop wallpaper since High School through my mid 20s! I hope you are having a great week, and we have some fun videos planned ahead. If you haven’t yet, check out my new Show, where I review the finances of different guests! Two episodes are out, with more to come every week!

- Humphrey & Rickie

Market Report

US Goods Trade Deficit Widens to Biggest in More Than a Year

The U.S. goods trade deficit widened sharply in May to $105.8 billion, well above the $85 billion economists expected and the largest shortfall in more than a year. The swing was driven by a double hit: exports fell 5.4% as oil shipments pulled back from April’s record highs (when the Iran war had made U.S. crude a critical alternative supply for global markets), while imports rose 3.6% to their highest level since early 2025.
- A big chunk of the import surge also reflects the relentless AI infrastructure buildout as capital goods imports including semiconductors, computers, and telecom equipment are up nearly 42% from a year ago.
Consumer goods imports also hit a six-month high as Americans kept spending despite elevated inflation, and companies continued stockpiling materials amid supply chain anxiety and fears of further price increases.
The wider deficit is a reminder that trade imbalances tend to worsen during periods of strong domestic demand and investment, both of which are present right now. The good news is that the partial reopening of the Strait of Hormuz should help normalize global trade flows.
But the structural import pressure from AI-related capital equipment isn’t going away anytime soon, and continued consumer spending means import demand is likely to remain elevated.
- A wider trade deficit also subtracts directly from GDP calculations, adding another headwind to growth at a moment when the Fed is already leaning toward rate hikes to cool inflation.

Soaring iPad, Xbox Prices Reveal Pain of Memory Chip Mess

Both Apple and Microsoft announced price increases on popular consumer products including Macs, iPads, and Xbox consoles, directly citing the AI-driven memory chip shortage.
- DDR5 chip prices have increased more than fourfold in the past year, and Micron’s CEO warned this week there is “no line of sight” to when supply will catch up with demand, with meaningful improvement unlikely before 2028.
After a massive chip glut following the pandemic, manufacturers cut back on capacity investment just as AI demand was quietly building toward an explosion. Now the handful of surviving memory producers find themselves in an extraordinary position with desperate customers, surging profits, and investors bidding their stocks to record highs.
Samsung is expected Monday to announce a historic 1,000 trillion won ($651 billion) investment package over the next decade, SK Hynix plans to double capacity over five years, TSMC is spending $56 billion on capex this year alone, and Micron is building new factories in Idaho and New York.
- Despite all of that, Bloomberg Intelligence analysts expect chip prices to remain elevated through at least 2027, meaning further consumer price increases on laptops, phones, gaming consoles, and other devices are likely.

Shopping Around for the Best Mortgage Rate Could Save You Tens of Thousands

A new Bankrate analysis of 3.2 million mortgage originations found that homebuyers who don’t shop around for the best rate collectively pay an estimated $65 billion annually in unnecessary interest costs.
For the typical individual borrower, that complacency compounds to more than $78,000 over the life of a 30-year loan.
- The fix is straightforward in theory: get multiple quotes, make lenders compete, and negotiate. But research consistently shows most Americans get just one quote and move on, unwilling to submit financial documents multiple times or spend time comparing lenders on a tight timeline.
The analysis found that high earners, older borrowers, and highly creditworthy buyers are affected the most by unnecessary interest costs. Wealthy buyers tend to trust a single recommendation from a real estate agent or wealth manager rather than forcing banks to compete for their business, while borrowers with the strongest credit profiles feel so little anxiety about loan approval that they lack the motivation to shop hard.
- Regulatory protections in FHA and VA loans actually shield lower-income borrowers from the worst overpricing. The sharpest shoppers turn out to be younger borrowers and those closer to their lending limits, people who are financially stretched enough that necessity forces them to find the best deal.
If you’re in the market for a home or considering a refinance, the single highest-ROI action you can take may simply be getting two or three more rate quotes.