UBS Forecasts 72% Surge in Memory Chip Prices by 2026 Amid Persistent Supply Crunch

Key Facts

UBS has significantly upgraded its outlook for the memory chip sector, projecting a substantial and deepening supply-demand imbalance. The Swiss investment bank expects DDR contract prices to skyrocket by 72% in the first quarter of 2026 alone. Analysts at UBS believe the current undersupply in the global memory market could persist until at least 2028, providing a long-term tailwind for earnings. Despite a recent retreat in semiconductor stocks on Wall Street, the bank has raised its price targets for major industry players including Micron and Samsung. This bullish stance is driven by industry data confirming that fundamental demand continues to outpace production capacity by a growing margin. Investors are encouraged to look past short-term volatility as the long-term outlook for margin expansion remains exceptionally robust.