Mizuho raised its worth targets for Micron Technology (NASDAQ:) and Western Digital (NASDAQ:) in a be aware Wednesday, stating they proceed to see optimistic constructive tailwinds for Memory, driving an upcycle into 2024E for each DRAM and NAND.

Analysts lifted the MU worth goal to $86 from $82 per share and the WDC worth goal to $55 from $52 per share.

“We see 1) supply cuts to sustain with lower capex wafer starts below demand, 2) demand better with PC/handsets, stronger Hyperscaler/Enterprise recovery lagging 1-2Qs, 3) DRAM/NAND pricing NovQ up 8-10% q/q, ahead of expectations, and expected to sustain into C24E,” analysts mentioned.

For MU the agency sees a number of tailwinds: “1) key HBM3E ramp, MU is targeting longer-term share in-line with its DRAM industry share (CY22E: ~25%) as it ramps with NVDA’s GH200 and B100 (HBM3E could see prices 4-6x vs. DDR5), 2) INTC Ultra (Meteor Lake) launching into “AI PC” and could drive strong content growth from 8GB to 16GB LPDDR5, and 3) we also see potential for increased US scrutiny and restrictions on CXMT (private) 17nm DRAM into 1Q24E, which could be a tailwind for MU as DRAM supply consolidates.”

The analysts famous that for WDC, HDD pricing persevering with to development up is optimistic for the corporate, whereas its flash reminiscence enterprise spinoff additionally brings tailwinds.