This article first appeared on GuruFocus.

Apple (AAPL, Financials) and Microsoft (MSFT, Financials) are starting to pass higher memory costs on to customers.

The reason is the AI boom. Data centers need more memory chips, and that has tightened supply across the electronics market.

Apple raised prices on some iPads and Macs. Microsoft also lifted the Xbox Series S price by $100. Both companies have enough scale to push through increases, even if some buyers may wait longer before upgrading.

Smaller hardware companies are in a harder spot. GoPro said memory costs jumped 80% to 115% near the end of the first quarter. Sonos is also dealing with higher component costs.

Micron is benefiting from the same pressure. As memory prices rise, suppliers have more pricing power.

For investors, this is a split story. Apple and Microsoft can probably manage the hit. Smaller device makers may struggle. Micron is one of the clearer winners while supply stays tight.