Micron Technology (MU, Financial) is on the rise after Citi reaffirmed its Buy rating ahead of the company's March 20 earnings report.
Analysts expect Micron to post $1.43 per share in earnings on $7.9 billion in revenue, but Citi's Christopher Danely thinks guidance could come in weaker than expected due to soft consumer demand and underutilization charges tied to NAND sales. Even with short-term challenges, Danely is bullish on Micron's long-term potential, especially in high-bandwidth memory and DRAM.
He pointed out that DDR5 spot prices have climbed nearly 8% this year, marking the biggest jump since early 2024. Danely expects DRAM prices to keep rising in Q2 2025, supporting Citi's $150 price target on Micron. With a strong foothold in the memory market and growing AI opportunities, he sees Micron as well-positioned for future growth.
