Micron's Price Target Cut by Citi Amid Declining Memory Prices

Citi has reduced Micron Technology's price target to $425, citing declining memory prices. The move follows a recent drop in DRAM spot prices. This development may impact investors and the broader market.

Citi analyst Atif Malik has cut the price target on MU by 17% to $425 from $510, while maintaining a Buy rating. The reduction was prompted by a 6% decline in mainstream DDR5 16GB DRAM spot prices since Micron's last earnings report. Fears around TurboQuant, a Google-developed algorithm-based memory compression technology, have added pressure by raising questions about whether structural reductions in memory demand could emerge from AI inference optimization.

Despite the target cut, Citi held its earnings forecasts unchanged, projecting core EPS of $58.46 for fiscal year 2026 and $94.55 for fiscal year 2027. The firm argues that ongoing negotiations between Micron and hyperscale customers could help stabilize contract pricing, and draws parallels to past efficiency improvements like DeepSeek, where cheaper technology ultimately increased total demand rather than reducing it.

The downgrade in price target reflects broader caution across the memory sector as spot pricing softens. Investors should watch upcoming contract pricing negotiations with major cloud customers and any further developments in memory compression technology as key indicators for whether Micron's premium HBM positioning can offset weakness in conventional DRAM markets.