Analysts raise pricing and revenue projections for memory chips, citing undersupply and strong AI-driven demand through 2028.
Memory and storage stocks climbed in premarket trading Monday, led by gains of up to 3.6% after analysts highlighted improving pricing trends and sustained AI demand. Micron, SanDisk, Western Digital, and Seagate all advanced ahead of the opening bell.
UBS revised its DDR contract pricing forecasts upward, now expecting a 32% quarter-over-quarter increase in Q3 2026, up from 17%. The brokerage projects the DRAM market will remain undersupplied until at least mid-2028, with 2027 bit demand growth of 36.2% outpacing supply growth of 19.3%. Global memory industry revenue is forecast to hit $992 billion in 2026 and $1.76 trillion in 2027.
Citi added Micron to its upside catalyst watch list, raising average selling price growth forecasts for Q2-Q4 2026 to 44%, 20%, and 13%, respectively. The sector’s recent 17% pullback from June highs was described as temporary by UBS.