Sony Group (SONY) Margins at Risk Amid Rising Memory Prices, Bernstein Warns

Sony Group Corporation (NYSE:SONY) is one of the top Robinhood stocks with high potential. On March 16, analysts at Bernstein SocGen Group downgraded Sony Group Corporation (NYSE:SONY) to Market Perform from Outperform, setting a price target of JPY3,400.00. The downgrade underscores the research firm’s concern that the company could bear the brunt of rising memory prices.

Sony Group Corporation (SONY) Margins at Risk amid Rising Memory Prices , Bernstein Warns

Memory prices are poised to increase sevenfold before the end of the year due to supply shortages. The shortages are driven by heightened demand for artificial intelligence memory. Amid the artificial intelligence boom, memory prices could remain elevated through 2027, which could take a toll on the electronics and gaming company.

The expected spike in memory prices raises concerns about PS5 hardware margins, with the PS6 also expected to face the same fate. PS5 incorporates $100 worth of memory components. Consequently, any slight increase in price threatens the already slim profit margins. In its fiscal third quarter of 2025, Sony delivered a solid earnings beat, driven by margin outperformance across multiple divisions.

Sony Group Corporation (NYSE:SONY) is a leading global entertainment and electronics company specializing in gaming (PlayStation), imaging (cameras), audio, home entertainment (TVs), and mobile technology. As part of the Sony Group, it produces high-performance sensors, develops film/music content, and provides financial services.

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