News
Citi reduces Micron price target to $425 due to memory spot price weakness
Tuesday, March 31, 2026 at 06:10 AM
Citi has lowered its price target for Micron from $510 to $425, pointing to current downward pressure on memory spot prices as the primary factor for the adjustment.
Context
On March 31, 2026, Citi lowered its price target for Micron to $425 from $510, reflecting emerging volatility in memory spot prices. While Micron reported record fiscal Q2 2026 revenue of $23.86 billion and a dominant 75% gross margin just weeks ago, the market is beginning to price in a cooling period for commodity DRAM and NAND. This adjustment follows earlier warnings that surging costs for high-end components like DDR5 and NVMe—which rose as much as 474% over two years—could eventually trigger an industry cycle collapse.
The correction is largely driven by a projected 17% year-over-year decline in global smartphone shipments for 2026, as high memory costs force OEMs to raise device prices. Although Micron is successfully shifting production toward high-margin HBM for AI data centers, the broader consumer electronics segment is under pressure. Despite the lower target, Micron remains a critical player in the $7.75 trillion AI capex landscape, supported by new domestic manufacturing expansions in Idaho and New York through 2027.
Sources (8)
Micron Technology, Inc. Fiscal Q2 2026 Earnings Call ...Spiralling memory spot prices could trigger 'industry cycle collapse,' report warns — NAND wafer costs surge 25% in a single month | Tom's HardwareIDC - Global Memory Shortage Crisis: Market Analysis and the Potential Impact on the Smartphone and PC Markets in 2026 Earnings call transcript: Micron Technology Q2 2026 beats forecasts with strong growth By Investing.comCiti Cuts Smartphone Forecast as AI Boom Ignites Memory ...Supply Chain Financing – Durable Global Trade in the Age ...Leading Indicators of When RAM and NVMe Supply Will Match DemandMicron Technology Investment Analysis: HBM Supply Economics and Margin Durability | Marvin Labs
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