Micron Technology (NASDAQ:MU) shares rose 3.4% in premarket trading on Thursday after Citi raised its price target on the memory maker, citing the belief that dynamic random access memory could see “unprecedented” demand from artificial intelligence.
“We believe DRAM will be the next chip to get long-term contracts with the AI food chain given its importance and undersupply, similar to what happened with NVDA, AMD and AVGO,” analyst Christopher Danely wrote in a note to clients. “We believe this will benefit Micron via higher and sustainable DRAM pricing and should enable Micron gross margins to get back to the peak of 60% with peak EPS above $23.00, almost double the previous peak of $12.26.”
Danely upped his price target to $240 from $200 on Micron and reiterated his Buy rating.
Looking out, Danely expects Micron to generate $62.5B in revenue and $21.05 in earnings per share in fiscal 2026, up from a prior view of $56B and $16.93 per share. He also raised his estimates for fiscal 2027 and 2028 as well.
