Tech Giants Struggle as Memory Prices Skyrocket

The tech world is facing a tough challenge. Memory and storage parts are getting more expensive. This is good news for companies like Sandisk, Micron, and Western Digital. Their stocks are doing great. But for companies like Apple, HP, and Dell, it's a different story. They are feeling the pinch. These tech giants are in a tight spot. They can either lower their profits or raise prices. Both options have risks. If they lower profits, investors might not be happy. If they raise prices, customers might buy less. Either way, it's a lose-lose situation. The demand for memory is so high that it's causing a shortage. This is not just a temporary problem. Experts think it might last for a while. This is bad news for companies that make devices like smartphones and computers. Apple's shares have not been doing well. They rose only 8. 6% in 2025. This is their worst performance since 2022. HP's shares are also down. They lost nearly a third of their value in 2025. Dell's shares have dropped 26% since October.On the other hand, memory and storage companies are doing great. Sandisk is leading the S&P 500. Western Digital and Micron are also among the top performers. Samsung's profits more than tripled thanks to higher memory prices. This is not just a short-term problem. It's a big change in the tech industry. Memory can make up 10% to 20% of the cost of a device. This means the problem is not going away anytime soon. HP is feeling the heat the most. They expect memory costs to cut their profits by 30 cents per share. Dell is doing better because of their server business. But even they are feeling the impact. Experts think this problem will last for the next two years. Memory prices are cyclical, but the current shortage is severe. It's not clear when things will go back to normal.