Micron Technology (MU) appears set to benefit from the tight supply of memory and higher pricing through at least the end of 2026, according to Piper Sandler.
“As previously stated, supply for calendar 2026 is effectively sold out, with limited ability to add capacity,” said Piper Sandler analysts Harsh Kumar and Josh Dunn in an investor note. “Management noted pricing for high value products, such as HBM4, will be value-derived. We continue to view the company as extremely well positioned, as demand should continue to outstrip supply.”
Piper Sandler maintained its Overweight rating and increased its price target on Micron to $400 from $275.
“Incremental supply requires new clean room space to accommodate finer line widths, while also shrink is hard to achieve,” Kumar said. “Therefore, the industry is seeing growing multiyear agreements as memory has become significantly more important due to the difficulty of engineering current memory generations. These products include LPDDR and HBM products. As such, customers are seeking multiyear supply assurances. MU is expected to bring on roughly 20% more supply in 2026 versus 2025, driven by node transitions as well as tremendous efforts to increase supply.”
Onsemi benefits from turnaround in auto, industrial markets
Onsemi (ON) appears to be benefitting from a perceived turnaround in the auto and industrial markets.
Piper Sandler reiterated its Overweight rating and nudged up its price target to $65 from $60.
“Within industrial, the inventory depletion is almost complete, while automotive demand has begun to normalize as of the end of 2025,” Kumar noted. “We do, however, expect normal seasonality, with Q1 revenue down 2%-3% and Q2 revenue to be up 3%-4%.”
Skyworks Solutions customer experiences TAM expansion
Meanwhile, the largest client of Skyworks Solutions (SWKS) is experiencing an expansion of its total addressable market.
“At the broadest level, SWKS noted that the TAM at its largest customer is starting to expand again,” Kumar said. “Skyworks is seeing more opportunities on the transmit and power handling side to extend the range of the phone. In addition, rising AI traffic and language translation are leading to increasing emphasis on transmit.”
Piper Sandler maintains its Overweight rating and $140 price target on Skyworks.
Qualcomm releases new products
“The company has 2 introduced products, the AI200, which is a more evolutionary product, and the AI250, which represents a more disruptive offering,” Kumar said. “We note these products utilize LPDDR as opposed to HBM. Management feels Nvidia’s (NVDA) acquisition of Groq validates this technology. AI200 is a rack-scale solution, while AI250 is expected to be available mid-to-late 2027. Management noted that it is working on other customers as well. Qualcomm currently has one customer, Humain, for a 200 MW application.”
Qualcomm also has a 20% share in Apple’s (AAPL) upcoming iPhone 18, which will be released this fall.
“Currently, QCOM’s share in Apple is tracking ahead of plan, as they are in 3 out of 4 models, all of which are selling well,” Kumar added.
Qualcomm products are also built into all of Meta’s (META) smartglasses.
Earlier this week, Meta indicated it was delaying the international expansion of its Ray-Ban Display glasses due to inventory constraints and unprecedented demand in the U.S.
Qualcomm (QCOM) has an Overweight rating and a $200 price target.