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Micron may follow Nvidia and AMD with this move that could send its stock higher, Citi says

1. Micron is benefiting from increased AI demand for DRAM memory chips. 2. Citi Research predicts a long-term pricing upturn for DRAM due to expected contracts. 3. Fiscal 2026 revenue guidance raised to $62.5 billion from $56 billion. 4. Gross margins projected to peak at 60% in fiscal Q3 2026. 5. Citi raised Micron's price target to $240, reflecting strong AI-driven growth.

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FAQ

Why Very Bullish?

The demand for DRAM in AI applications indicates strong revenue potential. Historical trends show similar demand spikes yielding substantial price increases for memory producers.

How important is it?

The article outlines significant increases in forecasted revenues and margins, directly correlating with MU’s core business.

Why Long Term?

Projected sustained demand for DRAM and major revenue increases extend the positive outlook into several fiscal years.

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