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Investing.com -- Bernstein is bullish on memory stocks after data showed another major jump in chip prices, with DRAM and NAND contract prices both set for significant increases in the second quarter of calendar year 2026, coming in ahead of the firm's own expectations.
The firm maintained Samsung Electronics, SK Hynix, Micron, and SanDisk all at Outperform, with price targets of KRW 225,000, KRW 1,150,000, $510, and $1,700, respectively. KIOXIA is rated Underperform.
Analyst Mark Li stated in a note to clients that overall DRAM contract prices in April were 57% higher versus the first quarter, with server DRAM up 48%, mobile up roughly 80%, and consumer up approximately 60%.
NAND contract prices are indicated to rise 65%-70% quarter-on-quarter, driven primarily by SSD and mobile NAND packages.
"Both DRAM and NAND contract prices are indicated to see another major increase in 2QCY26, and at a rate ahead of our expectation too," Li wrote, adding that "demand remained robust for server DRAM and eSSD, and continued keeping supply tight."
However, Bernstein flagged that spot prices sent a more mixed signal, with server DDR5 module spot prices down 6.7% month-on-month and NAND wafer spot prices falling roughly 7%, as price increases weigh on consumer end demand and force OEMs and module houses to reduce purchases.
Price increases are expected to decelerate notably into the third quarter.
Bernstein models memory prices staying strong into calendar year 2027 before beginning to normalize from the second half of 2027 into 2028.
