Investing.com -- KeyBanc Capital Markets downgraded Cirrus Logic to Sector Weight from Overweight following a research trip to Asia, while raising estimates across memory and analog chipmakers.

In a new note to clients, analyst John Vinh said continued data center and AI demand is driving persistent memory shortages and price increases, while squeezing supply available to PCs and smartphones.

He expects DRAM prices to rise 15% to 20% in the fourth quarter from the previous quarter, with NAND up 20% and high-bandwidth memory prices up 80% to 100% in the first quarter of 2027.

Memory suppliers plan to shift capacity toward data centers, which Vinh said would reduce PC and smartphone bit supply by 20% to 30% next year. He noted HP and Dell are extending supply agreements into 2031, while Google is discussing deals through 2035, suggesting a more durable cycle.

Analog trends are also said to be better than expected, with strong industrial and data center demand supporting lead times of about 26 weeks and, for some products, up to a year.

The findings were most positive for Micron, with Vinh also raising estimates on analog names including Analog Devices, Microchip, Texas Instruments and NXP.

On Cirrus Logic, the analyst said about 80% of revenue is tied to Apple, which has cut wafer starts at TSMC equivalent to 15 million to 20 million iPhones. “As such, CRUS growth prospects appear limited over the next 6-12 months,” he wrote.

Vinh added that an emerging PC diversification opportunity has likely been pushed out given elevated memory prices.

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