Seagate Shares Jump 3.8% After Apple CEO Warns of Soaring Memory Costs
STX•Apple’s outgoing CEO Tim Cook warned that soaring DRAM and NAND prices have become unsustainable, making price increases on Apple products unavoidable. Seagate shares jumped 3.8% overnight as investors priced in extended memory cost pressure and robust demand for storage solutions.
1. Memory Cost Surge
Tim Cook said DRAM and NAND prices have soared to unsustainable levels, forcing Apple to accept unavoidable price hikes on its iPhones, iPads and Macs as cost pressures mount from core memory suppliers.
2. Seagate Shares Rally
Seagate shares gained 3.8% in the overnight session as investors factored in sustained memory cost increases and robust demand for storage solutions, elevating the stock above recent trading ranges.
3. Sector Pricing Dynamics
DRAM prices climbed 6% in Seoul trading, while analysts from leading brokerages increased forecasts and price targets for major memory-chip manufacturers based on projected elevated demand in data centers and consumer devices.
4. Implications for Seagate
Prolonged memory cost inflation could pressure Seagate’s margins, but the company may leverage its market position and storage price adjustments to maintain profitability in a tightening supply environment.
