Quick Summary
- Vijay Rakesh of Mizuho Securities increased price objectives for Micron, SanDisk, Dell, 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 (HBM) prices projected to surge 70–100% through 2027 amid constrained supply
- Agentic AI technology anticipated to drive 9–13% additional DRAM demand moving forward
- Outperform ratings maintained across all five stocks; HBM market size expected to expand 90% from 2025 through 2028
Mizuho Securities has elevated price objectives for five technology companies, highlighting intensifying demand for memory semiconductors fueled by artificial intelligence applications.
Vijay Rakesh, an analyst at the firm, released the revised targets on May 28, 2026. The companies included in the update are Micron, SanDisk, Dell Technologies, Arm Holdings, and On Semiconductor. Each maintained its Outperform designation.
What’s Driving Mizuho’s Optimistic Outlook
Artificial intelligence stands at the center of these upgraded projections. Mizuho anticipates that demand for DRAM—a memory type essential for servers and computing devices—will remain robust through 2027.
The investment firm indicated that agentic AI — software capable of executing complex, multi-step operations autonomously—is contributing an additional 9% to 13% to DRAM demand. Growth rates in this category could exceed 30% on a year-over-year basis.
Nvidia’s Vera Rubin platform plays a significant role in this narrative. Mizuho highlighted that it incorporates triple the LPDDR5 memory content found in the earlier Grace generation. This upgrade substantially increases overall memory requirements.
Rakesh elevated Micron’s price target to $1,150 from $800, indicating approximately 25% potential upside from present levels. SanDisk’s objective rose to $1,825 from $1,625, pointing to roughly 15% appreciation potential.
Dell’s target received an increase to $350 from $300. Arm Holdings advanced to $360 from $290. On Semiconductor was raised to $150 from $130.
Constrained Supply in HBM and NAND Markets
High-bandwidth memory represents a critical area of focus for Mizuho. The firm projects the HBM addressable market will expand by 90% between 2025 and 2028, propelled by increased content per device and favorable pricing dynamics.
HBM pricing may climb 70% to 100% through calendar year 2027, according to Rakesh’s analysis. This projection stems from supply growth failing to keep pace with accelerating demand. Significant capacity expansions are not anticipated before 2027.
Clients outside the AI sector are experiencing supply constraints as well. Mizuho observed that certain non-AI customers face supply shortages of 30% to 50%, providing memory manufacturers with leverage to maintain firm pricing.
NAND demand continues to demonstrate strength. The firm reported that enterprise solid-state drive and key-value cache demand remains robust and is tightening as 2027 approaches. An emerging format called HBF could enter the marketplace, representing yet another catalyst for demand expansion.
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 wave of target increases from Mizuho comes on the heels of a comparable adjustment by Barclays, which adopted a more optimistic stance on the memory semiconductor sector just one day prior on May 27.
