Citi raised its Micron target to $1,300 from $1,150, retaining a Buy rating. Analyst Atif Malik forecasts fiscal Q4 revenue of $51 billion and earnings of $31.45 per share, both above consensus, ahead of Micron’s Sept. 30 results.
At Tuesday’s close near $1,093, Citi’s target implied roughly 19% upside. Malik’s model assumes blended DRAM prices rise 20% quarter over quarter in the current period and 13% in the next; NAND prices rise 34% and 15%. He also expects upside to guidance. Citi sees SEMICON West, Oct. 13–15 in San Francisco, as the next catalyst and expects equipment makers to discuss shortages of DRAM, multilayer ceramic capacitors, printed circuit boards and optical components.
Micron CEO Sanjay Mehrotra said on the fiscal Q3 call that DRAM and NAND demand significantly exceeded supply, and expected the imbalance to persist beyond calendar 2027. Micron has 16 Strategic Customer Agreements, 14 of which represent roughly $100 billion in minimum contracted revenue through 2030, backed by $22 billion in customer deposits and letters of credit. Citi expects AI inference to support enterprise SSD demand and offset weaker consumer NAND demand. Risks include slower AI infrastructure spending, faster capacity growth, customer inventory builds and softer consumer-electronics demand.
