By Angela Palumbo
Apple is buying up more-expensive memory, one Seaport Research Partners analyst says, as the tech giant turns a challenging cost environment into an opportunity to gain market share.
Jay Goldberg raised his price target on Apple to $320 from $310 on Monday, which implies a 25% increase from the stock's last closing price of $255.92. Goldberg, who rates shares as a Buy, wrote in a research note that he's optimistic about the stock's future because of decisions Apple is making now to compete in a challenging tech hardware environment.
"We have been speaking with many people across the industry this month and one theme has remained constant -- memory is very constrained and despite that, Apple is buying whatever memory they can," Goldberg wrote.
Barron's has reached out to Apple for comment.
Memory is a critical component needed to help power artificial intelligence. Because of this, demand is far outpacing supply and costs are skyrocketing. Tech hardware makers across the board are now dealing with the fallout. Companies like Dell Technologies and HP Inc. have announced they are raising prices on products to offset some of the margin pressures these cost increases are expected to have.
Meanwhile, Apple has yet to raise prices. The company also just launched the MacBook Neo, starting at only $599. The new laptop was a surprise to both customers and investors as it is affordable not only by Apple standards -- it costs less than an iPhone -- but it stands out against competitors who are raising prices on comparable products.
Goldberg wrote that Apple's decisions to buy up more memory and launch the Neo at its current price point could pinch margins now but potentially pay off down the line.
"We expect Apple's product gross margin to decline from last year's high 30's% to low 30's%. That said, we think the company can make up for some of this lost ground through its [market] share gains," he said.
New customers are crucial for Apple for multiple reasons. Consumers that buy one Apple device are likely to buy more because Apple products seamlessly integrate with one another. New Apple customers also mean more people spending on Apple services by purchasing apps, subscribing to Apple Music, and more. Services is Apple's highest-margin segment of its business.
"Unlike most of its competitors, Apple has a solid services and subscription business. Many of the new users it will gain this year are likely to subscribe to Apple's high margin services," Goldberg said.
Shares of Apple were up 1.4% to $259.56 on Monday. The stock has dropped 4.5% this year compared to the S&P 500's 3.6% decline.
Wall Street will be listening closely for any updates about memory and pricing of Apple shares on its second-quarter earnings conference call on April 30.
Write to Angela Palumbo at angela.palumbo@dowjones.com
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April 06, 2026 12:26 ET (16:26 GMT)
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