Memory stocks have recently rebounded, and one of the drivers behind that move is SanDisk's strong long-term outlook for the NAND market, according to Barron's, as cited by BlockBeats on Aug. 16.
KeyBanc expects DRAM prices to rise 15% to 20% quarter over quarter in the third quarter of 2026, followed by another 15% increase in the fourth quarter. For NAND, the firm projects a 30% to 40% quarter-over-quarter increase in the third quarter and another 15% rise in the fourth quarter. On a simple compounding basis compared with the second quarter, that would put cumulative gains by year-end at about 32% to 38% for DRAM and roughly 50% to 61% for NAND.
Even after a sharp run-up in memory prices, the price trend is still extending and has come in stronger than the market had previously expected, the report said. Whether DRAM and NAND price increases can continue into the fourth quarter is being treated as a key variable for the memory sector in the near term.
Micron valuation in focus
On valuation, UBS analyst Timothy Arcuri assigned Micron Technology (MU) a $1,625 price target. Because current supply shortages are keeping short-term earnings elevated, UBS did not use 2027 to 2028 earnings for its valuation framework. Instead, it based its view on expected 2029 EPS and applied a price-to-earnings multiple of about 11x.
UBS said Micron's long-term earnings power could still be higher than in past cycles even if the memory industry gradually normalizes or moves into a downturn by 2029. The bank also said a rising share of long-term supply agreements, or LTAs, could reduce the earnings volatility that previously came from capacity expansion, oversupply and falling prices in the memory industry.
FactSet data shows Wall Street analysts have an average price target of $1,549 on Micron, above the stock's Aug. 14 closing price of $970.20.