DRAM and NAND

Data center hardware stocks, including Dell and HPE, plummeted following Morgan Stanley downgrades, driven by concerns over margin pressure from rising memory costs. An “unprecedented pricing supercycle” fueled by hyperscale demand has pushed hardware valuations high, but analysts warn rising DRAM/NAND prices could squeeze margins. Dell is particularly vulnerable, drawing parallels to the 2016-2018 memory cycle where OEMs struggled to offset rising costs. Analysts foresee continued margin pressure for PC makers like Dell in the next 12-18 months, requiring proactive cost mitigation.