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Tim Cook cites a 100-year flood in memory chip pricing
Apple warned the surge is forcing pricing actions, while Amazon lifted its 2026 capex outlook to $220 billion due to higher memory chip costs.
Apple CEO Tim Cook said a “100-year flood” has occurred in memory chip pricing, pointing to a major disruption to the analytics the company typically uses, according to commentary tied to the company’s latest quarterly earnings call.
The material said the spike could put pressure on Apple’s margins and require higher prices to hold profitability, which may further strain consumers and weigh on sales.
It also highlighted that rising memory chip costs can boost memory suppliers, noting that both Sandisk and Micron fabricate memory chips and have benefited from higher prices, with data centers absorbing much of the supply.
The piece added that Amazon raised its 2026 capital expenditure forecast from $200 billion to $220 billion, citing rising memory chip prices, as AI hyperscalers contend with the same cost headwinds.