Investing.com – Evercore ISI reiterated an Outperform rating and $500 price target on Dell Technologies Inc. () following reports that is exploring financial derivatives to hedge against potential declines in memory and storage chip prices.
Dell shares fell approximately 12% intraday after Reuters reported that CoreWeave, an AI cloud provider, is considering put options and other instruments to protect against significant memory price drops. CoreWeave has not yet executed any hedges and remains in early stages of exploring these protections.
The reports emerged after memory suppliers including and Micron implemented new long-term supply agreements with fixed and variable pricing terms, including price floors and ceilings. SanDisk shares have surged over 4,000% in the past year with a market cap of $230 billion, reflecting strong demand for memory solutions. According to InvestingPro analysis, the stock currently trades below its Fair Value, appearing on the platform’s Most Undervalued list. Reuters noted that CoreWeave has signed memory deals with this floor and ceiling structure.
Evercore ISI stated that checks and original equipment manufacturer commentary suggest DRAM and NAND constraints will likely worsen exiting 2026 and persist through most of 2027. The firm noted that lower component pricing could prove demand-elastic by improving system affordability and unlocking delayed server deployments.
The firm said it does not view the CoreWeave report as a near-term negative change to its thesis, as checks and memory supplier commentary continue to point to constrained DRAM, NAND and HBM supply through 2027.
In other recent news, Evercore ISI has raised its price target for SanDisk to $3,100, maintaining an Outperform rating. The firm increased its revenue and earnings per share estimates, citing the durability of SanDisk’s earnings and free cash flow over the next few years. This adjustment reflects expectations of continued pricing power due to supply and demand imbalances projected through 2026 and 2027. Meanwhile, saw its American Depositary Receipts climb 6.8% in premarket trading following a turbulent session in South Korea.
Additionally, shares fell 4.9% in premarket trading, influenced by ’ recent earnings forecast. Samsung reported a 19-fold increase in operating profit from the previous year, impacting the broader memory chip sector. Bernstein has noted a modest rise in DRAM and NAND contract prices, indicating potential for significant price increases by the second quarter of 2026. The firm also highlighted strong server demand, which continues to absorb incremental supply. Lastly, Bernstein’s analysis of historical semiconductor contracts, including those of , sheds light on the challenges faced by long-term agreements in the industry.
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