Micron Price Target Raised to $1,300 by Citi on Stronger DRAM Pricing, Undersupply

Micron Price Target Raised to $1,300 by Citi on Stronger DRAM Pricing, Undersupply

Vandita Jadeja

Wed, September 23, 2026 at 8:15 PM GMT+3 4 min read

• MU -2.40%

Quick Read

• Citi raised Micron (MU) price target to $1,300, citing DRAM prices up 60%-plus and supply tightness expected to persist beyond 2027.

• Micron's 16 take-or-pay customer agreements lock in roughly $100 billion in minimum revenue through 2030, backed by $22 billion in deposits.

• Despite surging 277% year to date, MU trades at a forward PE of just 7 with consensus 2027 EPS climbing to $157.

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Citi analyst Atif Malik raised the firm's price target on Micron to $1,300 from $1,150 while keeping a buy rating on the memory maker. The revised target reflects better than expected DRAM pricing and continued supply tightness heading into fiscal Q4. For long-term investors, the price target raised by Citi reinforces a thesis that memory pricing power is durable.

Analyst's Case

Malik raised his August and November quarter estimates on the back of stronger DRAM pricing than he had modeled.

He expects the stock to rally into SEMICON West as equipment makers highlight DRAM shortages, and he thinks Micron should report upside to fiscal Q4 estimates as the DRAM and NAND markets remain undersupplied.

Management's own commentary supports the setup. On the fiscal Q3 call, CEO Sanjay Mehrotra said "DRAM and NAND industry demand continues to significantly exceed industry supply" and that Micron expects tight conditions to persist beyond calendar 2027. Fiscal Q3 DRAM prices increased in the low 60s percentage range, while NAND prices rose in the mid-80s percentage range.

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Company Snapshot

Micron is the only U.S.-based memory manufacturer, with a market cap of roughly $1.21 trillion. Fiscal Q3 2026 revenue reached $41.46 billion, up 345.7% year over year, with non-GAAP EPS of $25.11 and a record non-GAAP gross margin of 84.9%. Guidance for fiscal Q4 calls for revenue of $50 billion plus or minus $1 billion and EPS of $31 plus or minus $1.

Micron has also signed 16 Strategic Customer Agreements, typically five-year take-or-pay agreements running through calendar 2030. For 14 of the 16 signed agreements, cumulative revenue at the minimum price is approximately $100 billion, backed by $22 billion in cash deposits and letters of credit.

Why the Move Matters Now

Micron stock is trading around $1,075.72, up 277.14% year to date and 554.52% over the past year. Even after that run, shares trade at a trailing PE of 23 and a forward PE of 7, with a Street average target of $1,515.

Consensus fiscal 2027 EPS has climbed to $156.53, up from $117.86 ninety days ago, and Citi's $1,300 target sits below the Street mean, suggesting room for further upward revisions if pricing holds.

What It Means for Your Portfolio

For retirement-focused investors, the Micron stock story has shifted from a classic memory cycle trade to something more contract-anchored, with Strategic Customer Agreements pointing toward roughly half or more of company revenue under multi-year commitments once fully executed.

The Citi analyst upgrade to $1,300 highlights that near-term earnings power is still being underestimated. Position sizing matters after a triple-digit rally, but the combination of undersupply, take-or-pay contracts, and rising consensus estimates warrants a closer look, even as near-term volatility remains a real risk.

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