Hardware Stocks Get Hammered as Memory Supercycle Threatens to Erase Profits Across the Sector

The memory market just threw a curveball, and hardware makers are scrambling. Morgan Stanley unleashed a wave of downgrades across seven hardware companies on Nov. 17, hitting Dell TechnologiesDELL

with a rare double-downgrade to underweight and knocking Hewlett Packard EnterpriseHPE

down to equal weight — all because a memory-pricing “supercycle” is inflating faster and more aggressively than anything the industry saw during the 2016–2018 boom.

• DRAM spot prices have surged ~160% in a month, and NAND costs are up ~50% since April, blowing past the 80–90% gains of the last supercycle.
• Samsung raised DDR5 prices by up to 60% and SK Hynix says its HBM, DRAM, and NAND supply is already “essentially sold out” for 2026.

The squeeze is on: Memory can make up 10% to 70% of a device’s costs, leaving companies highly exposed. Additionally, server costs are projected to rise 10% to 25%, and with Samsung’s next memory fab not ramping until 2028, supply constraints are likely locked in through 2026. Morgan Stanley warned companies facing margin pressure typically lag peers, setting up 12 to 18 months of tighter profitability for PC makers.