Nanya Technology ( 2408 ) stock price trend is strong, and the AI wave has raised the target price to 180 yuan

Nanya Technology performed well during today’s trading session, closing at 149.5 NT dollars, up 2.4% from the previous trading day. This marks the second wave of rally for the stock within just a few days—on November 27, it surged by 6.96% in a single day, and now it continues its strong momentum, indicating sustained buying interest. The intraday high reached 152 NT dollars, with bullish momentum clearly evident.

AI and Server Demand Sparks Rare Industry Boom

The core driver behind Nanya’s stock price increase stems from the demand revolution fueled by the global AI computing boom. Cloud service providers are investing in AI servers at levels far exceeding expectations, which in turn boosts demand for memory modules in general servers. This demand expansion driven by actual end-user applications is fundamentally different from short-term price hikes caused by inventory replenishment or technological shifts in the past.

Institutional investors point out that the uniqueness of this memory cycle lies in a fundamental shift on the demand side. The significant overperformance of AI server orders has altered the global DRAM supply allocation logic, leading to a supply shortage that is expected to extend into the second half of 2026. Against this backdrop, the price trends of DRAM and NAND Flash are expected to remain upward, with a time span far exceeding historical averages.

HBM Shortage Worsens, Pricing Power for Standard DRAM Improves

The supply bottleneck of High Bandwidth Memory (HBM) further intensifies industry supply pressures. The manufacturing process for HBM consumes a large portion of advanced process capacity, significantly squeezing the available bit output of standard DRAM. Major memory manufacturers are prioritizing capacity for HBM and advanced process products, which severely constrains the supply growth of traditional DRAM.

This shift creates a favorable pricing environment for companies like Nanya Technology, which mainly focus on standard DRAM. Meanwhile, leading manufacturers are adopting cautious expansion strategies, not significantly increasing wafer input, and strict capacity controls help maintain a relatively balanced supply-demand structure.

Storage Demand Cycle Initiates, SSD Market Enters High Growth Phase

In addition to computing-side DRAM demand, the expansion of AI applications is also extending into storage. Enterprise SSD (eSSD) demand has been stimulated, with research firms forecasting a compound annual growth rate of 30% over the next five years. Under the scenario of continuous investment by cloud giants and relatively limited supply, the prices of high-capacity QLC and TLC SSDs are expected to remain on the rise.

This demand growth in both DRAM and NAND Flash suggests that the memory industry’s prosperity could become the main market theme over the next two years. As the world’s fourth-largest DRAM manufacturer, Nanya Technology is naturally positioned as a major beneficiary within Taiwan’s supply chain.

Dual Support from Market Sentiment and Technology, Short-term Bullish Trend Remains Steady

From a technical perspective, Nanya’s stock shows multiple bullish signals. Although foreign institutional investors have recently adjusted their positions, main funds have maintained a net buyover in the past five trading days, providing support at lower levels and boosting trading volume. Overall, the bullish pattern remains intact.

Nanya focuses on niche and consumer DRAM markets, benefiting from explosive AI computing demand and cloud enterprise SSD orders, with significant revenue growth momentum. While short-term fluctuations may occur, the fundamental bullish trend remains unshaken. Investors should continue to monitor capital flows and memory price movements.

Financial Outlook Significantly Upgraded, Target Price Raised to 180 NT Dollars

Domestic investment advisory firms have comprehensively revised upward Nanya’s financial forecasts. It is expected that by 2026, revenue will reach 152.7 billion NT dollars, a 33% increase from previous estimates; gross margin is projected to reach 58%, an increase of 9.3 percentage points; and earnings per share (EPS) are forecasted to be significantly raised by 62% to 20 NT dollars.

With a substantial enhancement in profitability, the firm has raised Nanya’s target price to 180 NT dollars and reaffirmed a “Buy” rating. However, investors should pay attention to the progress of DDR4 to DDR5 transition, as the price difference between DDR5 and 16Gb DDR4 during this process will be a key indicator for future demand sustainability. If the price gap remains stable or widens, demand momentum is likely to continue; if it narrows, expectations for DDR4 supply and demand may need adjustment.