Key Takeaways
- Vijay Rakesh from Mizuho Securities increased price targets for Micron, SanDisk, Dell Technologies, Arm Holdings, and On Semiconductor
- Micron’s price target jumped to $1,150 from $800; SanDisk climbed to $1,825 from $1,625
- High-bandwidth memory pricing may surge 70–100% through 2027 due to constrained supply
- Emerging agentic AI applications could boost DRAM demand by 9–13% incrementally
- Outperform ratings maintained across all five companies; HBM addressable market projected to expand 90% from 2025 to 2028
Mizuho Securities has increased its price projections for five major technology companies, highlighting intensifying memory chip demand fueled by artificial intelligence applications.
On May 28, 2026, analyst Vijay Rakesh announced revised price targets for Micron, SanDisk, Dell Technologies, Arm Holdings, and On Semiconductor. Each company retained its Outperform rating.
The Catalyst Behind Mizuho’s Optimistic Outlook
Artificial intelligence serves as the primary driver for these target increases. Mizuho anticipates sustained strength in DRAM demand—a memory type essential for servers and computing devices—continuing through 2027.
According to the firm, agentic AI — software capable of executing complex, multi-step operations autonomously — is contributing an additional 9% to 13% in DRAM demand. Annual growth rates in this category may exceed 30%.
Nvidia’s Vera Rubin platform also factors into the analysis. Mizuho highlighted that it integrates triple the LPDDR5 memory content found in the earlier Grace generation. This shift significantly elevates total memory requirements.
Rakesh boosted Micron’s price target to $1,150 from the previous $800, indicating approximately 25% potential upside from present levels. SanDisk’s target advanced to $1,825 from $1,625, representing roughly 15% upside potential.
Dell’s target moved up to $350 from $300. Arm Holdings saw its target rise to $360 from $290. On Semiconductor received an increase to $150 from $130.
Constrained Supply Dynamics in HBM and NAND Sectors
High-bandwidth memory represents a critical area of focus in Mizuho’s analysis. The firm projects the HBM total addressable market will expand by 90% between 2025 and 2028, propelled by content expansion and favorable pricing trends.
According to Rakesh, HBM pricing could climb 70% to 100% by calendar year 2027. This projection stems from supply expansion failing to keep pace with accelerating demand. The firm expects minimal major capacity expansions before 2027.
The supply crunch extends beyond AI customers. Mizuho observed that certain non-AI purchasers face supply shortages of 30% to 50%, enabling memory manufacturers to maintain firm pricing power.
NAND demand remains robust as well. The firm reports that enterprise SSD and KV Cache demand continues strengthening and tightening as 2027 approaches. An emerging format called HBF may also enter the marketplace, potentially creating additional demand momentum.
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 series of target upgrades from Mizuho comes one day after Barclays adopted a more optimistic stance on the memory sector on May 27.
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