‘Memory Prices Could Surge by 150%,’ Says Wedbush

Rising demand for artificial intelligence infrastructure is putting major pressure on memory supply, and that is starting to drive prices sharply higher. According to Wedbush, prices for memory like DRAM and NAND could increase by well over 100% in the first half of the year compared to late 2025 levels. In fact, DRAM prices could rise between 130% and 150%, with NAND seeing similar gains. As a result, companies that produce memory, such as Micron MU -1.03% ▼ , Seagate STX +2.06% ▲ , and Western Digital WDC +3.64% ▲ , are expected to benefit from the pricing surge.

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Unsurprisingly, the tight supply environment is also affecting other parts of the hardware ecosystem. Wedbush noted that hard drive manufacturers are likely to push for higher contract pricing as demand continues to outpace supply. Meanwhile, Nvidia NVDA +3.12% ▲ appears well-positioned to secure the components it needs for its AI systems, thanks to its strong supply chain relationships. In addition, CEO Jensen Huang recently said he expects around $1 trillion in orders for Nvidia’s Blackwell and Rubin systems.

However, not all areas of the tech market are seeing the same strength. For instance, analysts are becoming more cautious when it comes to the PC and smartphone markets, with Wedbush noting that many companies tied to PCs are being supported by their exposure to server demand. However, overall sentiment is weakening. In fact, industry feedback now suggests that PC and handset shipments, excluding Apple AAPL +1.98% ▲ , could decline by up to 20% year-over-year.

Which Memory Stock Is the Better Buy?

Turning to Wall Street, out of the memory stocks mentioned above, analysts think that MU stock has the most room to run. In fact, MU’s price target of $537.57 per share implies 27.7% upside potential.

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