Memory and storage stocks moved higher in premarket trading on Monday after several analysts pointed to stronger pricing trends and solid demand from artificial intelligence.
Micron rose 2.2%, while SanDisk gained 3.6%. Western Digital climbed 3.4%, and Seagate added 1.8%.
The rebound came as Wall Street analysts highlighted improving conditions across the memory chip market.
UBS Raises Memory Pricing Forecasts
UBS analyst Nicolas Gaudois raised his DDR contract pricing forecasts for the second half of 2026.
He now expects DDR contract prices to rise 32% quarter-on-quarter in the third quarter of 2026. That is up from his previous forecast of 17%.
For the fourth quarter, Gaudois increased his forecast to 18%, compared with an earlier estimate of 12%.
DRAM Supply Could Stay Tight
Gaudois said he expects the DRAM market to remain undersupplied until at least the second quarter of 2028.
He pointed to a large gap between demand and supply growth. UBS expects bit demand to grow 36.2% in 2027, while supply growth is forecast at only 19.3%.
According to Gaudois, that gap may be too large to close quickly.
UBS Sees Pullback as Temporary
UBS also projected strong growth for the wider memory industry.
The bank expects memory industry revenue to reach $992 billion in 2026 and $1.76 trillion in 2027.
UBS described the recent decline in memory stocks as likely temporary. The sector has fallen by an average of 17% from its June peak.
Citi Highlights Micron Upside
Citi also turned more positive on Micron by adding an upside 90-day catalyst watch.
The bank raised its average selling price growth estimates for Micron in 2026. Citi now expects prices to rise 44% in the second quarter, 20% in the third quarter, and 13% in the fourth quarter.
The stronger outlook was linked to rising demand for AI CPUs.
Bank of America Repeats Buy Rating on Micron
Bank of America analyst Vivek Arya also remained bullish on Micron.
Arya reiterated his Buy rating and kept a $1,550 price target on the stock.
He said memory now accounts for around 35% to 40% of cloud AI capital spending. That is roughly two to three times higher than historical levels.
Despite this, Arya noted that memory stocks are still trading at a relatively low 10 times forward earnings.
AI Demand Supports Semiconductor Outlook
Arya expects global cloud and AI infrastructure spending to approach $1.5 trillion by 2027.
He described the recent semiconductor pullback as a healthy reset rather than a sign of weaker AI demand.
For investors, the latest analyst updates suggest that memory stocks may still benefit from tight supply, rising prices, and continued AI infrastructure investment.
