All articles tagged with #memory pricing
Nvidia topped estimates with $96.2B in quarterly revenue and $2.22 EPS, issued Q3 guidance around $108B, and highlighted strong data-center demand; CFO noted memory costs have surged and supply will be tight through FY28. The company is expanding its financing network and AWS partnership, and Jensen Huang emphasized that both closed and open AI models will drive demand as Nvidia scales Rubin and its AI compute platform.
Prices for Nvidia-powered AI servers have jumped more than 15% as memory costs surge, a move analysts say reflects persistent AI demand and supply tightness. The hike covers Vera Rubin/Grace Blackwell systems, not just Nvidia chips, and could benefit Micron more than Nvidia thanks to its HBM4, SOCAMM2 memory and PCIe storage used in Nvidia’s Vera Rubin ecosystem. With memory allocations tight, the pricing power is likely to pass through the supply chain, and while traders still favor Nvidia as the AI boom’s winner, Micron could see outsized gains from the memory pricing dynamics into 2027–2028.
Famed investor Michael Burry has boosted his Micron short and expanded bets on semiconductors, arguing that rising Chinese memory supply from players like CXMT and YMTC could damp memory pricing. Micron has benefited from tight memory markets, but the growing Chinese output and doubts about AI hardware demand durations raise questions about how long the current rally can last.
UBS analysts say Micron Technology’s earnings outlook is strengthening due to higher memory pricing, signaling potential upside for MU amid a favorable memory pricing environment.
Apple posted a record June quarter with revenue around $109.4 billion and strong iPhone growth, but its stock tumbled about 9.7% as management cited a “100-year flood” in memory pricing as the main driver of margin compression, driven by DRAM/NAND cost spikes and supplier dynamics among Samsung, SK hynix, and Micron. Guidance for September suggests continued margin pressure, while analysts offered mixed price targets amid AI memory demand and competition for fabs.
Micron Technology (MU) fell about 4% in Friday trading even after Amazon raised its 2026 AI-capex to $220 billion, as investors took profits amid higher Treasury yields. The move comes after a rally driven by expectations for AI infrastructure demand, with memory pricing and data-center spending remaining key drivers. Amazon cited higher memory costs while expanding its investment, and Micron had previously highlighted customer commitments to secure memory supply as AI shortages intensify, suggesting mixed near-term dynamics for memory makers amid ongoing competition and valuation pressures.
Apple’s stock fell about 7% (intraday down as much as ~9.7%) after Tim Cook warned of a “100-year flood” in memory pricing that squeezed margins and led to softer guidance for the September quarter, even as the quarter showed solid revenue and record iPhone sales, fueling concerns that demand dynamics and supply constraints could weigh on growth.
Micron Technology blew past expectations with fiscal Q3 revenue of about $41.5 billion (up 74% sequential, 346% year over year) and $28.2 billion in net income, prompting a Q4 outlook of roughly $50 billion in revenue and $30.73 per share—well above estimates. The surge is driven by surging demand for high-bandwidth memory used in AI and data-center workloads, giving Micron significant pricing power amid ongoing supply tightness. The company has presold capacity through 2027 and struck strategic customer agreements, supporting a view of a durable AI-memory upcycle that has driven MU higher this year.
South Korean chipmakers Samsung Electronics and SK Hynix gave back earlier gains to fall intraday as investors priced in slower memory-price growth and uncertain AI-driven demand, with analysts noting memory supply tightness could persist into Q3 but price increases may ease in H2; the move followed Samsung’s weak post-earnings reaction and a broader tech selloff, keeping earnings optimism in check despite ongoing demand from hyperscalers.
Wolfe Research boosted Micron Technology's price target to $1,250 from $550, citing sharper DRAM and NAND memory pricing and demand likely to stay ahead of supply through 2027–2028; the note follows similar upgrades from Susquehanna, DA Davidson and Mizuho, with MU shares up about 11% on the day.
Wedbush analyst Matthew Bryson raised Micron’s price target to $500 (from $320) ahead of the March 18 Q2 report, arguing stronger memory pricing, tight high‑bandwidth memory supply for AI accelerators, and expanding gross margins could push MU higher as earnings estimates rise and guidance improves; Wall Street already shows a Strong Buy consensus with upside potential.
Apple’s first foldable iPhone will use 12GB of RAM supplied by Samsung, with DRAM shipments set to begin in Q2 2026 as Apple aligns production; Samsung reportedly negotiated a higher price due to tight memory supply from the AI server boom, leading Apple to shift more RAM orders to Samsung for predictable deliveries, though SK hynix and Micron are expected to contribute later. The book-style device is said to have a 4:3 aspect ratio and is slated to launch in September alongside the iPhone 18 Pro/Max.
DRAM contract pricing is surging to levels not seen before, with Micron reportedly proposing a 115–125% price increase versus Q4 2025 as hyperscalers and AI workloads drive demand. Industry trackers (DRAMeXchange, TrendForce) expect continued sharp price gains this quarter, leaving memory in a seller’s market with limited buyer leverage. Despite Micron’s planned fab buildout, shortages are projected to persist into 2028, threatening higher costs for consumer laptops, GPUs, and other devices as allocations favor servers and AI-related applications.
Apple forecast gross margins of 48%–49% for the March quarter, above December’s 48.2% and the 47.3% consensus, aided by a favorable mix of high‑margin hardware and Services growth (a record $30 billion in the December quarter). Memory pricing is rising and could pinch margins, but Cook said Apple will look at a range of options to mitigate it. Strong iPhone momentum and the Services pull helped support margins, and the stock rose about 1% in after-hours trading.
Micron Technology's stock has surged over 238% in 2026 due to improved memory chip prices and sustained demand, with the company increasing its capital expenditure forecast to $20 billion, indicating confidence in the ongoing demand cycle for memory products across various sectors.