Why a Samsung Strike Could Have Been Disaster for Apple, Nvidia and AMD
To shareholders of Apple and other tech stocks, it might not seem like that big a deal if workers at South Korea’s Samsung want to go on strike. But it would be a mistake to think that.
Samsung is one of the world’s most important memory chip suppliers. The planned 18-day strike by Samsung Electronics workers raised alarms because a prolonged strike could wreak havoc on the global hardware supply chain. That would affect Apple shareholders directly, as it would many other tech investors.
Read Next: Money Expert's Guide for Beginners on How To Invest $1,000 in 2026
Try This: Start Growing Your Net Worth With Smarter Tracking
For now, the immediate risk appears to have eased, as CNBC reported that Samsung and its union reached a tentative wage agreement. However, agreements can dissolve quickly, and the situation has exposed how dependent the tech sector remains on a small number of critical suppliers.
How Directly Related Is Apple to Samsung?
Apple isn't entirely reliant on the company, but Samsung does provide them with vital equipment. While Foxconn is mostly responsible for assembling Apple’s iPhone, Samsung is a major global producer of the DRAM and NAND flash memory chips that are used in the bulk of Apple’s product line, including iPhones, iPads and Macs.
Apple helps protect itself from single-supplier risk by using a number of non-Samsung companies to provide its chips, including SK Hynix and Micron. But memory chips are clearly an essential part of the company’s supply chain, and disruption at any step can cause delays and increased expenses.
The Apple Revenue Math
There is no reliable public estimate as to how much money Apple might lose as a result of a Samsung strike. In the Reddit WallStreetBets thread, there has been discussion around a $2 billion daily loss for Samsung if workers strike. On the other hand, Reuters reports a lower Samsung-specific estimate of roughly $668 million in daily losses.
Apple’s exposure would depend on several variables and could potentially be manageable. Factors such as Apple’s on-hand inventory of memory chips and the ability of its other suppliers to ramp up the needed production would go a long way towards determining if Apple would miss an iPhone production window.
The real risk would be an extended Samsung strike. That could tighten overall memory supply, push up component costs and compel other producers to increase prices. Apple could end up with temporarily shrinking margins or even product delays.
How a Samsung Disruption Could Hit Apple
The law of supply and demand shows that when supply shrinks, prices rise. This would likely be the case if Samsung workers went on strike for any meaningful period of time.
At that point, Apple would have a few options.
The first would be to absorb the cost, which would reduce its profits and margins, which in turn could potentially harm shareholders.
Option two is to raise its prices. Increased prices for consumers could reduce demand, which could also result in lower profits.
The final option is to pressure suppliers for better terms. This could potentially work, given Apple’s immense purchasing power, but it still might only be effective if there’s an ample supply of other chips available.
The truth is that during an extended strike, Apple would have limited options because investors often react strongly to quarterly iPhone sales, guidance and margin trends. Even if the strike won’t last for long, investors aren’t known for being patient when it comes to company profits. If a disruption pushes profits from one quarter to another, shares could potentially sell off sharply.
Learn More: Enter for a Chance To Win $500 in MoneyLion's Summer Break Giveaway (No pur. nec. Ends 7/4/26. See official rules at mlion.info/summerbreakofficialrules)
Why Nvidia and AMD Are Also Watching
Nvidia and AMD shareholders could also be affected by a Samsung strike, but for different reasons.
All of these tech companies would be affected by a global chip supply chain problem. But Apple’s main risk is consumer-hardware supply. For Nvidia and AMD, the risk is more about whether the artificial intelligence (AI) buildout can continue ramping up fast enough to meet investor expectations. Any slowdown in chip supply could hamper the explosive growth of these companies. As they’re priced at high-growth multiples, any stumbles could prove costly to shareholders.
What Investors Should Watch Next
The Samsung strike agreement appears to have staved off what could be a costly problem for Apple, Nvidia, AMD and other tech companies. The reprieve could actually give these companies time to prepare backup plans in case the threat of a strike ever renews.
But even if the companies are prepared to weather a short-duration shock, investors should be aware that the stock market often trades on emotion and rumors. Stocks can drop in price even if there isn’t any long-term damage to the profit trends of these companies.
If a key supplier like Samsung does face a true, long-term labor disruption, however, all bets are off. Short-term preparations might minimize the damage, but an extended strike would still likely cause margin compression, reduced product availability and lowered earnings.
Summer spending adds up fast. Enter MoneyLion's Summer Break Giveaway for a chance to win $500 — and give your budget a break. (No pur. nec. Ends 7/4/26. See official rules at mlion.info/summerbreakofficialrules)
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: