Apple and tech hardware stocks face crisis' as memory prices soar

"(Bloomberg/Ryan Vlastelica) Soaring prices for memory and storage components have turned companies like Sandisk Corp., Micron Technology Inc. and Western Digital Corp. into the hottest stocks in the market over the past year. But they're causing headaches for many of their customers. Hardware companies from Apple Inc. to HP Inc. are under pressure, as their need for expensive memory components becomes an investing risk one that isn't expected to reverse anytime soon. They're in a tough position, said Rob Thummel, senior portfolio manager at Tortoise Capital, which has $9.1 billion in assets and runs an exchange-traded fund dedicated to AI infrastructure."

"They basically have two options: They can take a hit to margins, which the market won't like. Or they can raise prices to offset the higher memory costs, running the risk of hurting demand. The surging demand for memory has contributed to what the technology research firm IDC calls an unprecedented memory chip shortage, which it sees as a crisis for device manufacturers as supply shortages lead to skyrocketing prices for the chips."

"Apple shares rose just 8.6% in 2025, their worst performance since 2022, and they're down 4.2% to start this year, putting them among the 20 weakest stocks in the Nasdaq 100 Index. HP shares closed Wednesday at their lowest level since November 2020 after losing nearly a third of their value in 2025 and sinking another 6.8% in the early days of 2026. And Dell Technologies Inc. has dropped 26% since hitting an all-time high in October."

Soaring memory and storage prices have elevated component makers like Sandisk, Micron and Western Digital while creating significant costs for device manufacturers. Hardware firms including Apple, HP and Dell face the choice of absorbing margin losses or raising product prices, which could dent demand. IDC characterizes current conditions as an unprecedented memory chip shortage driven by surging demand and constrained supply, producing sharply higher chip prices. The strain on margins has coincided with notable stock declines for several hardware makers and has prompted downgrades for semiconductor suppliers exposed to elevated memory costs.

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