By Angela Palumbo
Apple has multiple catalysts for strong revenue growth, so investors shouldn't be spooked by any hit to the company's margins because of rising memory costs, says one Morgan Stanley analyst.
"We see a path to $300 for Apple shares by this September," Morgan Stanley analyst Erik Woodring wrote in a research note on Monday. That's above Apple's all-time closing high of $286.19 on Dec. 2, 2025.
Woodring's optimism comes during a challenging time for tech hardware companies as memory costs surge. Memory is a critical component used to power artificial intelligence, making it a hot commodity as demand spikes. This has led to a run-up in costs, pressuring margins of PC and smartphone companies and leading to many of them raising prices.
Apple has not raised prices. Some analysts have pointed out that Apple's size and strength gives the company an advantage when negotiating memory prices with suppliers. But that doesn't change the fact that costs are going up.
Apple might say when reporting earnings on April 30 that margins may be pressured in the near-term, Woodring wrote, but revenue strength and a possible strong financial outlook for the June quarter should offset any concerns.
"Memory inflation will pressure margins, but this is well-known, and iPhone revenue upside sets up for a better than feared June quarter guide," Woodring wrote.
He added that any announcements regarding an AI powered Siri at the company's Worldwide Developers Conference in June, and the expected release of a foldable iPhone, would be positive tailwinds that can help push the stock higher after earnings.
Woodring, who rates the stock as Overweight with a $315 price target, also thinks Apple stands out against large tech peers as the company continues to report strong free cash flow while competitors continue to spend massive amounts of capex on building out AI infrastructure.
Shares were up 0.7% to $272.13 on Monday. Apple's current market cap is $3.997 trillion. Its market cap would be $4.404 trillion at $300 a share, which is above its record closing market cap of $4.229 trillion on Dec. 2.
Write to Angela Palumbo at angela.palumbo@dowjones.com
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April 20, 2026 12:42 ET (16:42 GMT)
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