Silver Price Plunge Triggers Demand Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 50 minutes ago
0mins
Source: CNBC
- Demand Decline Trend: Analysts indicate that after a 140% surge in silver prices in 2025, demand from various industries is beginning to wane, particularly as silver's extensive industrial applications make it more susceptible to economic cycles, potentially leading to further declines.
- Price Volatility Risk: UBS notes that silver lacks the strategic demand support from central banks, resulting in diminished investment appeal due to volatility that does not sufficiently reward investors, which may drive them towards other assets.
- Market Price Dynamics: Although silver prices have rebounded from a low of $67.60 in March 2026, current spot silver trading around $72.13 reflects a lack of confidence in the market regarding silver's future prospects.
- Uncertain Future Outlook: Analysts expect further downward pressure on silver prices as the Federal Reserve may raise interest rates in the first half of 2027, and ongoing uncertainties in the Middle East will continue to impact market volatility.
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Analyst Views on UBS
Wall Street analysts forecast UBS stock price to rise
11 Analyst Rating
7 Buy
2 Hold
2 Sell
Moderate Buy
Current: 47.780
Low
39.12
Averages
52.09
High
71.73
Current: 47.780
Low
39.12
Averages
52.09
High
71.73
About UBS
UBS Group AG is a Switzerland-based holding company and conducts its operations through UBS AG and its subsidiaries. The company operates as a wealth manager with focused asset management and investment banking capabilities and a capital-light and cash-generative business model. The Company comprises four business divisions: Global Wealth Management, which provides tailored advice and solutions to its clients around the globe; Personal & Corporate Banking division provides comprehensive financial products and services to private, corporate and institutional clients in Switzerland; Asset Management division offers investment capabilities and styles across all traditional and alternative asset classes, as well as advisory support to institutions; Investment Bank provides investment advice, financial solutions and capital markets access to institutional, corporate and wealth management clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Split History: Micron has not split its stock since 1994, having executed three splits in its history; as the stock approaches $1,000, expectations for a future split are rising, which could attract more retail investors and enhance liquidity.
- Strong Financial Performance: The company is projected to see a 194% revenue increase this fiscal year to $110 billion, with a further 58% growth anticipated in fiscal 2027, indicating robust demand outpacing supply, which strengthens the case for a stock split.
- Management Confidence: Management has hinted at continued improvement in financial performance, with the CEO noting that the company can only meet about 60% of demand; if the stock continues to rise, calls for a split will intensify, reflecting management's optimistic outlook on future stock performance.
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- Stock Surge: Following UBS's price target hike to $1,650, Micron's stock jumped 19.3% on Tuesday and topped $900 on Wednesday, nearing $1,000, reflecting strong market optimism regarding its future performance.
- Strong Earnings Outlook: Analysts project Micron's revenue to soar by 194% this fiscal year to $110 billion, with an additional 58% growth expected in fiscal 2027, indicating that the company will continue to perform well amid demand outpacing supply.
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See More
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- Price Volatility Risk: UBS notes that silver lacks the strategic demand support from central banks, resulting in diminished investment appeal due to volatility that does not sufficiently reward investors, which may drive them towards other assets.
- Market Price Dynamics: Although silver prices have rebounded from a low of $67.60 in March 2026, current spot silver trading around $72.13 reflects a lack of confidence in the market regarding silver's future prospects.
- Uncertain Future Outlook: Analysts expect further downward pressure on silver prices as the Federal Reserve may raise interest rates in the first half of 2027, and ongoing uncertainties in the Middle East will continue to impact market volatility.
See More
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See More
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See More
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- Stock Split History: Micron has not split its stock since 1994, having executed three splits in its history; as the stock approaches $1,000, expectations for a future split are rising, which could attract more retail investors and enhance liquidity.
- Strong Financial Performance: The company is projected to see a 194% revenue increase this fiscal year to $110 billion, with a further 58% growth anticipated in fiscal 2027, indicating robust demand outpacing supply, which strengthens the case for a stock split.
- Management Confidence: Management has hinted at continued improvement in financial performance, with the CEO noting that the company can only meet about 60% of demand; if the stock continues to rise, calls for a split will intensify, reflecting management's optimistic outlook on future stock performance.
See More
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- Milestone Market Cap: Micron Technology has surpassed a market cap of $1 trillion, joining the ranks of the 'Magnificent Seven' and chip peers like Broadcom and Taiwan Semiconductor, highlighting its robust position in the semiconductor industry.
- Stock Surge: Following UBS's price target hike to $1,650, Micron's stock jumped 19.3% on Tuesday and topped $900 on Wednesday, nearing $1,000, reflecting strong market optimism regarding its future performance.
- Strong Earnings Outlook: Analysts project Micron's revenue to soar by 194% this fiscal year to $110 billion, with an additional 58% growth expected in fiscal 2027, indicating that the company will continue to perform well amid demand outpacing supply.
- Split Speculation Intensifies: As the stock approaches $1,000, calls for a stock split are growing, which would make shares more accessible to retail investors and signal management's confidence in future price increases.
See More
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- Demand Decline Trend: Analysts indicate that after a 140% surge in silver prices in 2025, demand from various industries is beginning to wane, particularly as silver's extensive industrial applications make it more susceptible to economic cycles, potentially leading to further declines.
- Price Volatility Risk: UBS notes that silver lacks the strategic demand support from central banks, resulting in diminished investment appeal due to volatility that does not sufficiently reward investors, which may drive them towards other assets.
- Market Price Dynamics: Although silver prices have rebounded from a low of $67.60 in March 2026, current spot silver trading around $72.13 reflects a lack of confidence in the market regarding silver's future prospects.
- Uncertain Future Outlook: Analysts expect further downward pressure on silver prices as the Federal Reserve may raise interest rates in the first half of 2027, and ongoing uncertainties in the Middle East will continue to impact market volatility.
See More
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- Rating Upgrade: UBS upgraded GE HealthCare from Sell to Neutral and lowered its price target from $75 to $69, reflecting a reassessment of the company's stock valuation as shares trade near a 52-week low of $64.
- Stock Decline Reasons: GE HealthCare's stock fell approximately 30% following its Q1 earnings report, primarily due to disappointing results with $5.1 billion in quarterly revenue and an adjusted EPS of $0.99, missing the expected $1.05.
- Cost Pressures: Management highlighted that a supplier recall exacerbated margin pressures stemming from rising costs related to memory chips, oil prices, and freight, leaving little room to offset these headwinds in the short term.
- Long-Term Growth Confidence: Despite short-term challenges, GE HealthCare's leadership reaffirmed its long-term growth trajectory at the Bank of America Global Healthcare Conference, anticipating that cost initiatives, pricing actions, and new product launches will help restore margin improvement.
See More
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- Market Cap Milestone: Micron Technology reached a market cap of $1 trillion on Tuesday, driven by a significant upgrade from UBS analyst Timothy Arcuri, who set a new price target of $1,625, indicating strong bullish sentiment among investors.
- Staggering Returns: The stock has surged approximately 880% over the past 12 months, meaning a $10,000 investment a year ago would now be worth nearly $100,000, showcasing the company's robust performance and appeal to investors.
- Analyst Target Discrepancies: While Arcuri's target is optimistic, the consensus average among analysts is only around $570, suggesting a potential downside risk of about 38%, reflecting varying market perspectives on Micron's future performance.
- Valuation Risks: With a price-to-earnings ratio of just 9, significantly lower than the S&P 500's 26, there are concerns about the sustainability of Micron's current growth, especially given the volatility associated with AI spending, prompting investors to remain cautious about potential risks.
See More
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- Micron Milestone: Micron Technology's stock surged over 19% on Tuesday, pushing its market capitalization past $1 trillion for the first time, which has drawn significant investor attention and catalyzed a broader rally in technology stocks, indicating strong confidence in the semiconductor sector.
- Tech Indices Surge: The S&P 500 and Nasdaq Composite both reached new highs, marking their longest winning streak in over a month, reflecting optimistic market sentiment and heightened investment enthusiasm in technology stocks driven by Micron's performance.
- SK Hynix Joins Ranks: South Korean chipmaker SK Hynix also entered the $1 trillion market cap club on the same day, highlighting the influx of investment into AI-linked semiconductor companies and further enhancing the growth potential of the global semiconductor market.
- Auto Sector Volatility: Despite AutoZone reporting better-than-expected earnings, its stock experienced its worst day since 2022, illustrating market concerns regarding the automotive sector amid rising inflation and energy prices, which could impact consumer spending and overall economic stability.
See More
