No fire sale for firewalls as memory shortages could push prices higher

Analyst commentary indicates global DRAM price hikes are set to raise bill-of-materials costs for next‑generation firewall hardware, pressuring gross margins at vendors including Fortinet, Palo Alto Networks, and Check Point into 2026; Palo Alto’s larger inventory may soften near‑term impact, while Check Point has implemented a 5% price increase. Reports from Korea Economic Daily and TrendForce suggest DRAM could see up to a 70% quarterly jump and a further 50% in 2025, potentially doubling year‑over‑year costs by mid‑2026, with vendors signaling margin compression in recent earnings.