Key Takeaways
- Investment bank Mizuho increased price objectives for Micron, SanDisk, Dell, Arm Holdings, and On Semiconductor based on AI memory trends
- Micron’s new target reached $1,150 from $800; SanDisk climbed to $1,825 from $1,625
- High-bandwidth memory prices may surge 70–100% through 2027 amid constrained supply
- Emerging agentic AI applications may contribute 9–13% additional DRAM requirements moving forward
- Outperform ratings maintained across all five companies; HBM addressable market projected to expand 90% from 2025 through 2028
Mizuho Securities has elevated price objectives for five tech-sector equities, highlighting intensifying demand for memory semiconductors fueled by artificial intelligence applications.
Analyst Vijay Rakesh released the revised targets on May 28, 2026. The companies addressed include Micron, SanDisk, Dell Technologies, Arm Holdings, and On Semiconductor. Each maintained its Outperform designation.
Factors Behind the Upgraded Outlook
The primary catalyst for these adjustments centers on artificial intelligence adoption. Mizuho anticipates robust demand for DRAM, the memory variety deployed in servers and computing systems, continuing through 2027.
The research firm indicated that agentic AI — software capable of executing complex, multi-stage operations independently — is contributing an additional 9% to 13% in DRAM consumption. Annual expansion in this category could exceed 30%.
Nvidia’s Vera Rubin architecture plays a significant role in this narrative. Mizuho highlighted that it incorporates triple the LPDDR5 memory content versus the earlier Grace generation. This specification change alone elevates aggregate memory requirements.
Rakesh increased Micron’s price objective to $1,150 from $800, representing roughly 25% potential appreciation from present levels. SanDisk’s target advanced to $1,825 from $1,625, indicating approximately 15% upside.
Dell’s objective was boosted to $350 from $300. Arm Holdings climbed to $360 from $290. On Semiconductor rose to $150 from $130.
Constrained Supply in HBM and NAND Sectors
High-bandwidth memory represents a critical element in Mizuho’s thesis. The firm projects the HBM addressable market will balloon 90% between 2025 and 2028, propelled by increased content requirements and favorable pricing dynamics.
HBM pricing specifically may climb 70% to 100% by calendar year 2027, according to Rakesh’s analysis. This stems from production capacity failing to keep pace with consumption growth. No substantial manufacturing expansions are anticipated through 2027.
Even enterprises outside AI applications are experiencing shortages. Mizuho observed that certain non-AI customers face supply deficits ranging from 30% to 50%, providing memory manufacturers leverage to maintain elevated pricing structures.
NAND consumption remains resilient as well. The firm reported that enterprise solid-state drive and KV Cache requirements are robust and tightening as 2027 approaches. An emerging format designated HBF could enter commercial production, creating another prospective demand catalyst.
On Wall Street, Micron currently holds a Strong Buy consensus rating based on 27 Buy ratings and three Hold ratings over the last three months. The average price target for the stock is $716.30.
This recent set of target increases from Mizuho comes on the heels of a comparable adjustment by Barclays, which adopted a more optimistic stance on the memory industry just one day prior on May 27.
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