Apple stock hits high as Cramer links data center vote to cost relief

Based on reporting by Trey Thoelcke (24/7 Wall St.).

Apple shares surged to an all-time high on November 4, 2026, after Jim Cramer, the host of CNBC's Mad Money, argued that the recent midterm election results could significantly lower the company's hardware costs. Cramer suggested that voter rejections of new data center projects may reduce demand for memory chips, thereby stabilizing or lowering the prices Apple pays for these components. This shift marks a rapid reversal for the stock, which had fallen sharply in the previous session due to concerns over rising memory costs and shrinking profit margins.

What happened in the markets

Apple closed trading on November 4 at $349.51 per share, a gain that pushed the stock up 29.0% year to date. Cramer noted on Mad Money that this rally was a direct response to the political outcome, stating, "I think Apple’s stock soared because the outlook for new data center construction may have changed, perhaps radically, because of these midterm election results."

The catalyst was a series of local ballot measures across the United States. According to Carol Massar of Bloomberg Businessweek, approximately 40 local ballot measures aimed at limiting data center development were on the ballot, and all but one of them passed against the projects. This political shift has led analysts to reassess the pace of infrastructure expansion in the artificial intelligence sector.

Why data centers affect Apple's costs

The connection between data centers and Apple lies in the global supply chain for Dynamic Random-Access Memory (DRAM). DRAM is the working memory used in smartphones, computers, and servers. As hyperscalers rush to build and fill new AI data centers, they require massive quantities of DRAM. Memory manufacturers have shifted production capacity toward these high-demand server components, leaving less supply for consumer devices like iPhones, Macs, and iPads.

This imbalance has driven up prices for Apple. In its fiscal fourth-quarter report released on November 2, Apple reported a gross margin of 47.9%, noting that tariff refunds added about one percentage point to that figure. However, the company guided December-quarter gross margin to a lower range of 45% to 46%. CEO John Ternus stated, "we see the pricing for memory purchases continuing to increase." Additionally, Apple’s inventories rose to $14.54 billion, up from $5.72 billion a year earlier, according to the company's earnings release filed with the SEC.

What this means for investors

For investors, the key question is whether the political slowdown in data center construction will actually translate into lower costs for Apple. Cramer’s thesis relies on the assumption that reduced demand from new data centers will cause DRAM prices to stabilize or plummet. If memory prices fall, Apple’s gross margins could recover, supporting the stock's recent gains.

However, skepticism remains among market observers. On CNBC's Fast Money, Tim Seymour attributed the rally to positioning and short covering, questioning whether the data center boom is truly over. Melissa Lee described the situation as "more of a slowdown than an end." Cramer himself offered a caution, warning viewers to "Never confuse what happens in the stock market with what happens in reality" and noting that the elections did not upend the business cycle.

The stock's performance will ultimately depend on fundamental data rather than political headlines. Investors should watch Apple's next earnings report for two specific signals:

• Gross Margin Performance: If the December-quarter gross margin lands at the top of the 45% to 46% guidance range, it would suggest cost pressures are easing.
• Management Commentary: If Apple moderates its view that memory pricing will continue to rise, it would provide hard evidence supporting Cramer’s case.

What happens next

While the election results may slow the pace of new data center projects, existing facilities will continue to purchase memory, and contracts signed before the vote remain in effect. Memory makers will adjust their capacity allocation between servers and consumer devices over the coming quarters, meaning any relief for Apple’s costs will likely be gradual rather than immediate.

Analysts have offered varying estimates on the scale of the impact. Dan Ives estimated that 10% of planned data centers may not happen, while Goldman Sachs suggested the election could affect 45% of planned data center capacity expansion. Regardless of the exact percentage, the market is now pricing in a potential shift in the AI infrastructure buildout. For those following the stock market basics, this event highlights how local political decisions can ripple through global supply chains and impact major tech stocks.

Sources

• Jim Cramer’s Surprise Midterm Winner: Apple, Because Fewer Data Centers Could Mean Cheaper Memory — reported by Trey Thoelcke, 24/7 Wall St.