Memory Stocks Sandisk (SNDK), Seagate (STX), and Western Digital (WDC) Surge on AI-Driven Demand Forecast

Key Takeaways

• Mizuho Securities increased Sandisk’s (SNDK) price objective to $2,200 from a previous $1,825, keeping an Outperform designation
• Price objectives for Seagate (STX) and Western Digital (WDC) were similarly elevated by Mizuho analysts
• Artificial intelligence applications are creating a mismatch between memory supply and demand, with DRAM requirements projected to expand 27% year-over-year in 2026
• Google’s (GOOGL) Tensor Processing Unit volumes may reach 35 million or more by 2028, compared to approximately 4.3 million in 2026, amplifying memory requirements
• Broadcom (AVGO) artificial intelligence revenue projections increased to $122 billion for 2027, with a new $170 billion forecast introduced for 2028

Mizuho Securities has elevated its price objective for Sandisk (SNDK) to $2,200 from a prior $1,825, pointing to artificial intelligence as the primary catalyst driving demand beyond available supply in the memory sector. The investment firm maintained its Outperform designation on the shares.

This optimistic perspective was applied broadly to Seagate Technology (STX), where Mizuho increased its target to $1,090 from $875, and Western Digital (WDC), elevated to $685 from $550. Each of these three companies maintained Outperform designations.

Seagate Technology Holdings plc, STX

Sandisk began trading Monday at $1,982 and climbed approximately 5.69% during the session after the upgrade announcement.

Lead analyst Vijay Rakesh and his research group anticipate DRAM wafer production starts increasing 10% in 2026 and an additional 6% in 2027, primarily fueled by high-bandwidth memory (HBM) requirements. Their models show DRAM demand expanding 27% year-over-year in 2026 and 24% in 2027.

Regarding NAND flash, enterprise solid-state drives represent the primary demand catalyst. Mizuho’s models indicate total NAND demand growing 18% year-over-year in both 2026 and 2027, while wafer production starts are anticipated to decline 5% in 2026 before rebounding 3% in 2027. Additional capacity isn’t expected to come online until 2028.

Google TPU Volumes Draw Attention

Mizuho also conducted its quarterly artificial intelligence ASIC roadmap conference call, and the projections for Google’s Tensor Processing Units were particularly striking. The research firm anticipates more than 35 million TPU units shipped from Google in 2028, climbing from approximately 4.3 million in 2026 and roughly 2.4 million in 2025.

This expansion is connected to Google’s strategy to distribute TPU technology externally through collaborations with Anthropic and other partners. Mizuho notes this figure substantially exceeds its previous projection of approximately 7 million ASIC shipments for Broadcom, suggesting upside potential for the semiconductor company.

Broadcom AI Revenue Projections Increased

Broadcom (AVGO) may achieve 50 million total TPU shipments spanning 2026 through 2028. Additionally, Meta’s (META) MTIA v3/v4/v5 accelerator platforms and OpenAI’s forthcoming ASIC — where Broadcom serves as a critical partner — provide additional growth drivers.

Mizuho elevated its Broadcom artificial intelligence revenue projection for 2027 to $122 billion, up from a previous $120 billion, and established a 2028 projection of $170 billion. TPU products remain Broadcom’s primary AI offering in the firm’s assessment.

Rakesh’s research group stated that investor worries regarding ASIC versus GPU market positioning and competitive pressure from MediaTek are “exaggerated,” and advised capitalizing on the AVGO share price decline.

The research team noted that the optimistic scenario for TPU ASICs in 2028, combined with OpenAI, MTIA, and ARM-associated ASICs, creates favorable conditions for both memory manufacturers like Micron (MU) and Sandisk, as well as storage companies like Western Digital and Seagate.

Sandisk’s price-to-earnings ratio presently stands at 58.32x, versus a historical median of 29.61x, indicating the valuation premium the market assigns to anticipated growth. Insider transaction activity over the previous three months reveals $8.9 million in share sales, with no documented purchases.

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