Memory Suppliers Jump After Cook Warns Apple May Raise Prices

Shares of Micron Technology, Sandisk, Seagate Technology and Western Digital rose in U.S. premarket trading on Thursday after Apple Chief Executive Tim Cook warned that rising memory and storage chip prices could force the company to raise product prices. Micron rose about 4.7%, Sandisk gained 4.4%, Seagate advanced roughly 4% and Western Digital climbed more than 5% before the opening bell.

Cook said Apple has absorbed higher component costs but can no longer do so indefinitely. He warned: “Unfortunately, price increases are unavoidable.” He added the company is trying to limit the impact on customers while facing shrinking memory supply and higher component costs.

Apple did not specify when any price increases might take effect or which products would be affected. The remarks came as Apple prepares for a September product rollout that analysts expect to include new iPhone models and a reported foldable iPhone. Cook is scheduled to hand over some leadership duties to John Ternus on Sept. 1.

Industry executives and analysts point to strong demand from artificial intelligence data centers as a key driver of the shortage. AI servers use large amounts of high-bandwidth memory, reducing capacity available for smartphones, personal computers, vehicles and gaming consoles. Estimates cited by analysts indicate demand for AI-focused high-bandwidth memory could grow about 30% annually through 2030.

Investors have pushed memory and storage stocks higher this year amid expectations of sustained supply tightness. Year-to-date gains include more than 230% for Micron, about 280% for Western Digital, more than 610% for Sandisk and over 270% for Seagate.

Brokerages have raised price targets along with the stock gains. Deutsche Bank lifted its Micron target to $1,500 from $1,000. Morgan Stanley analyst Erik Woodring raised his price targets on Seagate to $1,035 from $767 and on Western Digital to $650 from $488. Western Digital closed Wednesday at $712.13 and Seagate closed just above $1,066.

Asked whether U.S. restrictions on dealings with certain Chinese memory manufacturers should be reconsidered to ease shortages, Cook said all options should be considered and that Apple will look at its supply options. U.S. companies generally need government licenses to work with some Chinese suppliers because of national security rules.

The comments came amid growing AI demand and constrained memory and storage supply for consumer devices.