Citi raises Micron price target to $150 on strong results

Investing.com - Citi raised its price target on Micron Technology (NASDAQ:MU) stock to $150 from $130 on Thursday, while maintaining a Buy rating following the company’s quarterly earnings report. The semiconductor giant, currently trading at $127.25, has demonstrated impressive momentum with a 42% surge over the past six months. According to InvestingPro analysis, the stock’s RSI suggests it’s in overbought territory.

The memory chipmaker reported better-than-expected results and guidance on Wednesday, driven by stronger pricing and shipments across its product lines. The performance exceeded Wall Street expectations, continuing the positive momentum in the semiconductor memory market. With a robust current ratio of 3.13 and moderate debt levels, InvestingPro data shows Micron maintains strong financial health, earning a "GOOD" overall rating.

Citi noted that the upside in Micron’s results came more significantly from NAND flash memory products compared to DRAM memory, which may explain why the stock traded down following the earnings call despite the positive numbers.

The price target increase reflects Citi’s higher earnings estimates for Micron based on the improved outlook for memory chip demand and pricing. The firm’s $150 target represents additional upside potential from Wednesday’s closing price.

Micron has benefited from increasing demand for memory chips used in artificial intelligence applications, data centers, and other high-performance computing systems throughout 2025, helping drive the company’s improved financial performance.

In other recent news, Micron Technology reported fiscal third-quarter earnings that exceeded analysts’ expectations, with an earnings per share (EPS) of $1.91, surpassing the forecast of $1.59. The company’s revenue reached $9.3 billion, also beating the expected $8.84 billion. Analysts have responded positively to these results, with Stifel raising its price target for Micron to $145, Raymond (NSE:RYMD) James to $150, Piper Sandler to $165, and KeyBanc to $160, all maintaining favorable ratings on the stock. These firms cited Micron’s strong fiscal third-quarter results and optimistic fourth-quarter outlook, highlighting growth in High Bandwidth (NASDAQ:BAND) Memory (HBM) and DRAM segments as key drivers. Micron’s gross margins performed better than anticipated, and further expansion is expected, driven by pricing and product mix improvements. The company also announced significant investment plans in U.S. manufacturing and R&D, emphasizing its strategic focus on AI-driven memory markets. Despite these positive developments, Micron’s stock experienced a slight decline in trading, reflecting cautious investor sentiment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.