SanDisk, Micron pumped as RAM spot price +406% YoY. NAND +165%.
SanDisk and Micron stocks rally after top analyst predicts 'historic upcycle'
SanDisk and Micron stocks rally after top analyst predicts 'historic upcycle'
Story by Vince Condarcuri • 16h
Technology hardware firms Micron Technology (MU) and SanDisk (SNDK) are expected to keep doing well as the memory market enters what BNP Paribas calls a “historic upcycle,” thanks to growing demand from artificial intelligence. According to five-star analyst Karl Ackerman, consumer DRAM and NAND TLC spot prices jumped 408% and 165% year-over-year in November. Therefore, he believes that this signals a major boom in DRAM and NAND that could last through 2026 and says companies focused on data centers are likely to benefit the most.
Ackerman added that DRAM prices are set to rise 35% in the fourth quarter and 10% in the first quarter of 2026 due to continued supply shortages. NAND prices are expected to go up as well, with a 15% increase in Q4 and another 7% in Q1. These price hikes are part of a pattern seen in previous upcycles. On average, DRAM upcycles last 8 months with prices rising 53%, while NAND upcycles last 6 months with a 40% increase from low to high points.
Right now, we are five months into the current DRAM upcycle and four months into the NAND upcycle, where prices are up 55% and 51%, respectively. Ackerman believes this cycle will last longer than usual. One key reason is the large gap between spot and contract prices: 45% for DDR4, 89% for DDR5, 47% for 256Gb TLC, and 9% for 512Gb TLC. These big spreads suggest that prices will stay strong going forward. As a result, shares surged in today’s trading. |
