Memory Stocks Surge on Mizuho’s AI-Driven Demand Forecast

Mizuho Securities ignited a rally in memory stocks after significantly raising price targets for sector leaders. Sandisk (SNDK) saw its target jump 21% to $2,200, while Seagate (STX) and Western Digital (WDC) received 25% and 24% target increases respectively. The firm maintained Outperform ratings across the board.

The upgrades reflect a fundamental supply-demand imbalance developing in memory markets. DRAM demand is projected to grow 27% year-over-year in 2026, with NAND demand rising 18% annually through 2027. High-bandwidth memory (HBM) requirements for AI applications are driving much of this growth.

Google's TPU shipments alone could scale from 4.3 million units in 2026 to over 35 million by 2028, creating ripple effects across the memory supply chain. Broadcom's AI revenue projections tell a similar story - estimates now stand at $122 billion for 2027, with $170 billion anticipated in 2028.