Apple Stock Faces Test as Memory Costs Squeeze Valuation
Apple's stock has been performing well in 2026, climbing about 18% while the S&P 500 gained around 13%. However, its premium valuation is now under scrutiny due to a leadership change and supply chain problems. John Ternus took over as CEO on September 1, 2026, inheriting a $4.7 trillion-valued business and a memory chip shortage described by outgoing CEO Tim Cook as a '100-year flood.'
The shortage has led Apple to raise prices on iPhones by $200 to $500 and Macs and iPads by $100 to $300. This move protects margins in the short term but carries risks, such as pushing budget-conscious buyers to delay upgrades or switch to competitors.
Analysts are divided on whether Apple's valuation multiple will compress toward the broader big tech average, which could lead to a significant decline in stock price. While some firms have raised price targets, others warn that if Apple's growth rate no longer justifies its premium over peers, the stock could give back a meaningful chunk of its 2026 gains.