CLSA downgraded the stock to ‘Hold’ from ‘Outperform’ and slashed its price target by 23% to ₹12,100 from ₹15,800 earlier.
The revised target implies a potential upside of just 5% from the current market price.The brokerage said the memory industry is entering a super cycle, driven by AI-led demand for high-bandwidth memory and DDR5, while mainstream storage faces tightening supply and rising costs.
India’s heavy reliance on imports leaves it exposed to this global supply squeeze, especially as manufacturers prioritise high-margin AI-grade memory.Memory prices have already surged, with DDR5 and DDR4 contract rates rising 119% and 63% month-on-month in January, while NAND contract prices increased 37-67%.
CLSA believes smartphone volumes are at risk, as higher memory costs could push up average selling prices by 10-25%, disproportionately affecting the lower-end consumer segment.
It flagged risks to low-end smartphone demand and concerns over medium-term growth visibility.
According to Bloomberg data, 34 analysts track the stock, of which 26 have a ‘Buy’ rating, three recommend ‘Hold’, and five have a ‘Sell’ call.
Morgan Stanley remains among the most bearish on the stock, with a price target of ₹8,157, the lowest on the Street and the fourth one below the ₹10,000 mark.
Dixon Technologies shares ended 1.36% lower at ₹11,479 on Wednesday. The stock is down 5% so far in 2026.
