The founder, CEO, and Principal of World Trade Securities and lead portfolio manager and head of TMT Credit & Equity Research, Nicholas Mugalli, urged memory investors to pay close attention to recent notes from Mizuho and Bank of America (BofA), highlighting a severe undervaluation of memory stocks like Micron Technology Inc. (NASDAQ:MU) and SanDisk Corp. (NASDAQ:SNDK) amidst a long-term supply shortage.
Mizuho’s Undervaluation Call
Mizuho has reiterated its “Outperform” ratings across key memory players, prompting Mugalli to call the firm’s outlook “just unbelievable.” He said that memory investors must “bookmark this and read it word by word,” declaring that MU, SNDK, Lam Research Corp. (NASDAQ:LRCX), and Applied Materials Inc. (NASDAQ:AMAT) are currently undervalued.
While Mizuho modestly lowered price targets due to multiple compression in the semiconductor space, the firm’s fundamental outlook remains highly bullish.
Mizuho adjusted MU’s price target from $1,375 to $1,300, representing a 39.36% upside from current levels, but noted that “aggregate DRAM demand continues to grow” and market de-specification is actually a response to “tight DRAM supply.”
For SNDK, Mizuho maintained an “Outperform” rating and adjusted the price target to $1,875 from $1,900, representing a 27.95% upside from current levels. The firm projects that SNDK’s earnings will surge, stating that “EPS grows 5x” between fiscal years 2026 and 2028.
Furthermore, Mizuho estimates there is “potential for SNDK to buy back 25-30% of the company” using an aggregate $30-50 billion of free cash flow between 2027 and 2028.
BofA Foresees ‘No Boom and Bust’
This bullish thesis is mirrored in a BofA note on SK Hynix Inc. ADR (NASDAQ:SKHY), which maintains a “BUY” rating and a price objective of 3,000,000 KRW, representing a 74.93% upside. BofA highlighted an ongoing “memory shortage” and anticipates that memory supply is likely to remain tight even over the long term.
This upside is anchored by an increase in Long-Term Agreements (LTAs), which make Average Selling Prices (ASPs) “likely more stable (no longer highly volatile).”
Additionally, BofA emphasized a “50%+ payout ratio” for SK Hynix, supported by a newly announced W40tn share buyback stretching between August and November 2026.
Reacting to BofA’s expectation that the memory supply constraint will stay beyond 2030, Mugalli asked: “Very interesting…so no boom and bust cycle this time??”
How Have These Stocks Performed in 2026?
| Memory Stocks | 1-Month Performance | YTD Performance | 1-Year Performance |
| SanDisk Corp. | 35.48% | 525.57% | 2819.17% |
| Micron Technology Inc. | 13.69% | 226.85% | 664.64% |
| Lam Research Corp | 11.98% | 76.36% | 190.04% |
| Applied Materials | -3.10% | 79.65% | 179.34% |
| SK Hynix ADR | 8.08% | -5.27% (Since July Listing) | — |
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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