Western Digital shares rally, as Apple flags unsustainable memory chip costs

Western Digital (WDC) shares rose in pre-market trading on June 18. Apple CEO Tim Cook stated that rising memory chip costs have become unsustainable. Cook warned that component shortages may force Apple to raise product prices.

High demand for AI hardware drives tight supply in the memory market. Major suppliers like Western Digital benefit from these market conditions.

Western Digital is completing a three-day measurement period for a stock swap. The company will exchange over 1 million SanDisk shares for its own common stock. This transaction is expected to close on June 22.