Particle.news
Download on the App Store

Mizuho Lifts Targets on Micron, SanDisk and Tech Peers Citing Surging AI Memory Demand

The firm says constrained HBM supply could force higher memory prices that boost supplier earnings.

Overview

  • Mizuho published a research note on May 28 raising price targets and keeping Outperform ratings for five names, with Micron moved to $1,150 and SanDisk to $1,825.
  • The upgrades also raised targets for Dell, Arm Holdings and On Semiconductor to $350, $360 and $150 respectively, reflecting broader exposure to higher memory content in AI systems.
  • Mizuho quantified demand drivers, forecasting agentic AI could add 9–13% incremental DRAM demand and noting Nvidia’s Vera Rubin platform carries roughly three times the LPDDR5 content of its predecessor.
  • The firm projects HBM prices could climb 70–100% by 2027 and expects the HBM addressable market to grow about 90% from 2025 to 2028 because no major new HBM capacity is expected through 2027.
  • Analysts say the move amplifies a sector re-rating that began with Barclays and gives near-term revenue visibility for memory makers, but it remains vulnerable to faster capacity additions or a pullback in AI spending.