Wall Street Tells Investors Its Less Excited About Micron Stock

"Citi's concern is mainstream DDR5 16GB DRAM prices have fallen 6% since Micron's earnings report, driven by fears that TurboQuant, an algorithm-based memory compression technology, will structurally reduce memory demand. Citi isn't buying it."

"The stock's recent collapse creates an uncomfortable backdrop. MU fell -9.92% on the most recent trading day alone and is now down -21.93% over the past month - despite being up 265.23% over the past year."

"In Q1 FY2026, Micron posted revenue of $13.643 billion, up 56.65% year over year, with non-GAAP EPS of $4.78 beating estimates by 21.33%. Q2 guidance called for revenue of $18.70 billion and non-GAAP EPS of $8.42."

"CEO Sanjay Mehrotra stated plainly that 'the gap between the demand and supply for all of DRAM, including HBM, is really the highest that we have ever seen.'"

Citi reduced its price target for Micron Technology to $425 from $510 while keeping a Buy rating, countering fears about TurboQuant's effect on memory demand. Despite a recent 20% drop in shares, the broader analyst community remains positive, with 38 out of 43 analysts rating it a Buy. Micron's Q1 FY2026 revenue was $13.643 billion, a 56.65% year-over-year increase, and guidance for Q2 suggests continued strength in the memory market. CEO Sanjay Mehrotra emphasized unprecedented demand-supply gaps in DRAM.

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