Apple (AAPL) gained about 3% on Friday after BNP Paribas upgraded the stock to Buy from Hold, stating that the recent spike in memory prices could strengthen the tech giant’s competitive position in the global smartphone market. Top-rated analyst David O’Connor also raised his price target to $300 from $260.
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It is worth noting that O’Connor ranks 2,396 out of more than 12,196 analysts tracked by TipRanks. He has an overall success rate of 80%, with an average return per rating of 41.6% over a one-year timeframe.
Here’s Why Memory Prices Have Increased
Memory prices have risen recently because demand for DRAM and NAND has grown much faster than supply. The rapid expansion of AI infrastructure requires huge amounts of high‑bandwidth memory, putting heavy pressure on suppliers.
At the same time, production remains tight due to earlier industry cutbacks, long equipment lead times, and the difficulty of ramping advanced memory nodes. Together, these factors have pushed contract and spot prices sharply higher.
The smartphone industry is being hit hard as memory is an expensive part of a phone. As AI demand eats up more supply, makers of low‑ and mid‑tier devices are facing higher costs and tighter component availability. Smaller companies with less buying power are feeling the most pressure, while larger players like Apple can secure better pricing and a stable supply.
Analyst Says Apple Is Better Positioned
According to O’Connor, this gives Apple an advantage as rising memory costs ripple through the market.
O’Connor said that while Apple is not immune to higher memory prices, its scale, supply chain leverage, and premium pricing power give it more room to absorb cost increases than its smaller competitors. As a result, he expects Apple to gain smartphone market share as rivals struggle with tighter margins and constrained component availability.
What Is the Price Target for AAPL?
Turning to Wall Street, AAPL stock has a Moderate Buy consensus rating based on 16 Buy, eight Hold, and one Sell recommendations. The average Apple stock price target of $304.85 implies an upside potential of 12.64%.
