![\"UBS](\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/03\/1772563449_619_616cf6225f0982d864f4331070adcf67.jpeg\")
UBS raises memory chip price targets as supply crunch deepens, defying sector sell-off Proactive uses images sourced from Shutterstock <\/p>\n UBS raises memory chip price targets as supply crunch deepens, defying sector sell-off Proactive uses images sourced from Shutterstock <\/p>\n
The bank now forecasts DDR contract prices rising 72% in the first quarter alone, with undersupply expected to persist into 2028<\/p>\n
Wall Street’s retreat from memory chip stocks on Tuesday sits awkwardly alongside a research note from UBS, the Swiss investment bank, which argues that the underlying fundamentals for the sector have rarely looked stronger.<\/p>\n
In its monthly memory semiconductors update published the same day, UBS raised its price targets for the major chipmakers and sharply upgraded its contract pricing forecasts after a week of industry meetings, presenting a picture of a market where demand is outrunning supply by a growing margin.<\/p>\n
The bank now forecasts DDR memory contract prices rising 72% quarter on quarter in the first three months of 2026, revised up from an earlier estimate of 62%, with server DDR5 pricing reaching one dollar per gigabit.<\/p>\n
For the second quarter, UBS projects a further 40% increase, pushing server DDR5 pricing towards a range of $1.30 to $1.50 per gigabit.<\/p>\n
NAND flash memory, used in storage devices including those made by Western Digital Corp (NASDAQ:WDC)<\/a>\u00a0and Seagate Technology Holdings<\/a>, is forecast to rise 65% in the first quarter and a further 30% in the second, with UBS pushing back its estimate of when the NAND cycle will peak to the second quarter of 2027.<\/p>\n The pricing surge reflects a structural capacity problem that UBS believes cannot be resolved quickly.<\/p>\n Chipmakers are constrained not only by the physical limits of their factory floor space, but by equipment delivery lead times that are lengthening, and by the sheer logistics of installing and qualifying new tools at scale.<\/p>\n The bank estimates that Samsung can realistically add around 80,000 wafer starts per month of new DRAM capacity per year, while SK Hynix is limited to roughly 65,000, figures that it believes are insufficient to close the demand gap before the fourth quarter of 2027.<\/p>\n UBS raised its price target for Micron Technology Inc (NASDAQ:MU)<\/a>, which features among Tuesday’s biggest Nasdaq fallers<\/a>, to $475 from $450, reiterating its ‘buy’ rating.<\/p>\n","protected":false},"excerpt":{"rendered":"UBS raises memory chip price targets as supply crunch deepens, defying sector sell-off Proactive uses images sourced from…\n","protected":false},"author":2,"featured_media":24216,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[129],"tags":[15323,15326,15322,1080,15324,223,15325],"class_list":{"0":"post-24215","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ubs","8":"tag-ddr-memory","9":"tag-memory-chip","10":"tag-nand-flash-memory","11":"tag-price-target","12":"tag-price-targets","13":"tag-ubs","14":"tag-western-digital-corp"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116166725718401850","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/24215","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=24215"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/24215\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/24216"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=24215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=24215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=24215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}