Micron and Sandisk rally on new Street-high price targets from Susquehanna - Sherwood News

Micron Technology and SanDisk surged to new all-time highs following upgraded price targets from Susquehanna, with analyst Mehdi Hosseini raising his estimates significantly for both companies. The fi... Read original →

Micron and SanDisk’s rally stems not from Wall Street optimism alone but from structural supply tightness meeting AI’s insatiable demand for HBM. Technically, yield challenges in HBM3E/HBM4 are forcing GPU makers to pre-book capacity through 2027, raising DRAM ecosystem barriers and amplifying bargaining power for foundries in Taiwan, China and Korea. Geopolitically, U.S. export controls on advanced memory to China compel Micron to shift capex to Japan and Malaysia—adding >15% to operational costs. Competitors like Samsung and SK Hynix may accelerate HBM IP cross-licensing, while China’s CXMT leverages LPDDR5 adoption in domestic AI chips. Over the next 18 months, memory pricing will hinge on AI customer anchoring; unaligned second-tier players risk irrelevance.