Shares of the Boise-based memory chipmaker advanced in premarket trading Tuesday, rebounding from a sector-wide selloff a day earlier, as a bullish analyst call reinforced the thesis that surging memory prices still have substantial room to run.
The stock traded higher by roughly 3% in early Tuesday dealings after sliding more than 4% on Monday amid broader weakness across chip equities. Memory-sector names have swung sharply in recent sessions as investors work to assess the durability of a pricing rally tied to artificial-intelligence infrastructure spending.
A KeyBanc Capital Markets analyst raised his price target on the company to $1,750 from $1,600 in a note issued Monday, following a supply-chain research trip through Asia. The revised target implies upside of roughly 87% from Monday’s closing level and is anchored to a price-to-earnings multiple of nine times projected fiscal 2027 earnings. The analyst characterized the memory shortage as durable, pointing to supply-chain feedback indicating tight conditions extending through 2027.
The bullish case rests on a broad-based acceleration in pricing across memory categories. Dynamic random-access memory prices are projected to climb 15% to 20% quarter-over-quarter in the third quarter, with a further 15% increase forecast for the fourth quarter. NAND flash pricing is expected to rise even more sharply—between 30% and 40% in the third quarter, followed by another 15% gain in the fourth. High-bandwidth memory, the specialized chip technology critical to advanced AI accelerators, is forecast to more than double in price next year.
The upgrade adds to a growing chorus of Wall Street optimism around the name, with some coverage suggesting shares could double from current levels as AI-driven demand pushes the company beyond its historical boom-and-bust cycle. The average analyst price target across Wall Street currently stands near $1,579, according to FactSet data.
