Apple Stock May Plummet to $240 by End of 2027 Amid Memory Chip Crisis
Apple's stock price has been on an upward trajectory this year, rising around 18% while the S&P 500 is up about 13%. However, investors are now looking ahead to next year and anticipating potential headwinds for the company. One major issue Apple faces is the rapidly increasing prices of memory chips, which could eat into its profits or force price hikes on consumers.
The problem is exacerbated by the fact that AI firms have snapped up all available memory chip capacity, driving up costs. Apple's new CEO, John Ternus, will face a challenging situation as he navigates these difficulties. The company's valuation is also under scrutiny, with some arguing it is overpriced relative to its peers.
If Apple falls in line with the big tech average valuation of 25 times forward earnings, combined with fiscal-year 2027 projections of $9.57 in earnings per share next year, that would price the stock at around $240 per share, a significant drop from its current price of $320.