Surge in Memory Chip Prices Pressures Consumer Electronics Amid AI Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
0mins
Source: Benzinga
- Surge in Memory Prices: With global AI capital expenditures projected to reach between $5 trillion and $8 trillion by 2030, memory chip prices are expected to rise another 40% to 50% in Q1 2026 after a similar increase in Q4 2025, putting pressure on sales and margins for consumer electronics manufacturers.
- Declining Electronics Demand: Rising memory prices are expected to push smartphone average selling prices up by 3% to 5%, while the market could contract by 5.2% in 2026, creating significant sales challenges for companies like Dell, Lenovo, HP, and Xiaomi.
- Poor Performance of Electronics Stocks: Major consumer electronics stocks have suffered in recent months due to supply chain constraints, with Dell, Lenovo, and HP seeing declines of 8.90%, 14.02%, and 23.14% respectively, while Apple’s stock rose by 15.51%.
- Memory Chip Manufacturers Rally: Driven by relentless demand and soaring prices, stocks of leading memory chip manufacturers like Samsung, SK Hynix, and Micron have surged by 60.62%, 181.19%, and 256.26% respectively over the past few months, indicating strong market performance.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAPL is 299.69 USD with a low forecast of 230.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
19 Buy
11 Hold
2 Sell
Moderate Buy
Current: 256.440
Low
230.00
Averages
299.69
High
350.00
Current: 256.440
Low
230.00
Averages
299.69
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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