Citi expects Micron stock to rally into this event

Investing.com -- Citi expects Micron shares to rally into the SEMICON West conference, raising its price target on the memory maker to $1,300 from $1,150.

The bank lifted its August and November-quarter estimates on better-than-expected blended DRAM pricing, and now models fiscal fourth-quarter sales and earnings of $51 billion and $31.45 a share, above consensus. It also expects "upside to results and guidance" when Micron reports.

Micron’s stock "has made a large round trip since last earnings, falling 35% from the prior high and rebounding 34% from the July low," Citi said, pointing to the event as the next catalyst.

At the conference, the bank anticipates equipment makers will flag shortages of DRAM, MLCC, printed circuit boards and optical components, a potential bottleneck in the very tools used to manufacture memory chips.

Those constraints, Citi said, could limit DRAM and NAND supply growth to the low-20% range and help push memory prices higher into next year.

The bank expects both markets to remain undersupplied on strong AI-driven demand, with prices likely peaking in the second quarter of 2027.

Citi assumes blended DRAM average selling prices rise 20% and 13% quarter-on-quarter in the current and following periods, with NAND up 34% and 15%. It also expects enterprise SSD demand, driven by AI inference, to offset softer consumer NAND.

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