Mizuho Securities issued an industry report on Tuesday, significantly raising its price targets for Micron Technology, STMicroelectronics NV, and Texas Instruments, based on the ripple effects from AI infrastructure build-out. The report suggests that robust AI demand is now spreading to the memory and analog chip markets.
Spillover of AI Demand Boosts Chip Stocks Mizuho analyst Vijay Rakesh noted in the report that his team's analysis of AI data centers' impact on the memory and analog markets reveals channel information indicating analog chips are benefiting from accelerated AI server deployments, while DRAM and NAND memory continue to gain from strong AI server demand. Consequently, Mizuho assigned STMicroelectronics a "Outperform" rating, raising its price target by 21.4% from $56 to $68. For Texas Instruments, while maintaining a "Neutral" rating, the firm increased its price target from $255 to $300. The analyst also anticipates that supply tightness will persist into the first half of 2027.
Furthermore, the report expressed high optimism for Micron Technology, believing its leading position in the HBM market will directly benefit from the surge in AI computing demand. Combined with Micron's previously reported strong quarterly results and a projected 37% revenue growth for the next quarter, the company is seen as a core beneficiary in the current AI cycle.
Industry Outlook: Growth Expected in 2026 Despite recent pullbacks in some chip stocks due to profit-taking, multiple institutions remain optimistic about the semiconductor industry's prospects for 2026. Data shows the global semiconductor market, driven by AI, grew 25.6% to $792 billion in 2025. Institutions like Semiconductor Intelligence predict that, benefiting from the continued expansion of AI, the semiconductor market growth rate could reach 30% in 2026. Analysts believe that even if memory shortages impact the consumer electronics market, the thriving AI sector along with relative stability in industrial and automotive markets will continue to drive semiconductor industry growth in 2026.