Micron, Samsung, SK Hynix Set to Benefit From Memory Price Surge, Says UBS

TLDR

• Global memory sales hit a record $74.6 billion in July, up 31.7% month-on-month.
• NAND sales jumped 40.7% to a record $25.8 billion, driven by AI storage demand.
• UBS raised its DRAM price forecast to rise 32% and 18% over the next two quarters.
• UBS and Bernstein both expect near-term price gains but disagree on how long the rally lasts.
• Micron, Samsung, SK Hynix, and SanDisk are seen as the main beneficiaries.

Global memory chip sales reached a record $74.6 billion in July. That marks a 31.7% jump from the previous month, according to a new report from UBS.

The number also came in 2.8 percentage points above the ten-year seasonal average. Analysts at UBS and Bernstein now expect memory chip prices to climb sharply through the rest of 2026.

The main companies set to benefit are Micron Technology, Samsung Electronics, and SK Hynix. Together, these three firms produce most of the world’s DRAM and NAND memory chips. SanDisk is also expected to gain, since it focuses heavily on NAND flash memory.

Micron Technology, Inc., MU

DRAM and NAND Both Post Record Sales

DRAM memory sales hit a record $48.0 billion in July. That figure rose 27.7% from the prior month, though it landed about 8 percentage points below the historical seasonal average.

NAND memory told a different story. Sales rebounded to a record $25.8 billion, up 40.7% month-on-month. That reading came in nearly 17 percentage points above the historical average, largely due to demand tied to AI data storage.

UBS wrote that the memory market is strengthening as AI-related demand grows. The firm also pointed to ongoing negotiations over long-term supply contracts, known as LTAs, as a factor supporting the current upswing.

Based on this, UBS raised its price forecasts. The firm now expects DRAM contract prices to rise 32% in the third quarter of 2026 and 18% in the fourth quarter.

NAND prices are expected to climb 30% and then 12% over the same two quarters. UBS believes the DRAM market will stay undersupplied until at least mid-2028.

That view is tied to demand for AI chips. UBS projects bit demand for DRAM will grow 36.2% in 2027, while supply grows only 19.3%.

High-bandwidth memory, used in AI processors, is central to this demand. UBS expects high-bandwidth memory demand to grow 90% in 2026 and another 77% in 2027.

Based on these trends, UBS forecasts total memory industry revenue will reach $992 billion in 2026. That figure is expected to climb to $1.76 trillion in 2027.

Bernstein Sees a Shorter Rally

Bernstein agrees that prices will rise in the near term for both DRAM and NAND. But the firm expects the pace of those price increases to slow later in 2026.

Bernstein said demand from consumer devices will eventually weaken. It noted that pulled-forward consumer purchases and steady server demand have helped limit damage so far, but called both temporary factors.

Both firms agree that long-term supply contracts will play a key role going forward. Bernstein called these contracts a buffer that could soften any future price correction.

The two firms disagree most on how long the current upswing will last. UBS expects tight supply to continue through mid-2028, while Bernstein expects prices to peak and begin cooling sometime after mid-2027.

UBS also flagged a risk to its own forecast. The firm said customer spending limits and the pace of AI-related capital spending remain the biggest threats to the current upswing.

Investors will be watching upcoming contract price negotiations for the next signals. Commentary from major chip makers on supply contract terms is also expected in the coming months.

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