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GM reiterates higher profit outlook despite DRAM cost and tariff impacts
GM kept its full-year profit forecast and reiterated $1.5 billion to $2 billion in commodity inflation, signaling continued strength in a tight memory supply environment used in AI servers.
General Motors reiterated its full-year outlook despite higher memory chip costs and tariff impacts, offering a potential read-through for memory chip suppliers such as Micron and Sandisk amid market fears of a slowdown, according to Yahoo Finance.
GM delivered better-than-expected second-quarter earnings and, for the second time this year, raised its full-year profit forecast while reiterating its guidance range for $1.5 billion to $2 billion of commodity inflation and higher DRAM costs.
The article points to a continuing tightening in the memory market, driven by demand outpacing supply for high-bandwidth memory and advanced DRAM used in AI servers, with premium AI memory capacity largely sold out through much of 2026 by key suppliers.
It also notes that the memory shortage has supported higher pricing power for the industry, while Micron shares hit a record high in late June before later giving back 25% on concerns that AI demand could slow.