Micron slips 2% as UBS and Citi raise price targets

  • Micron shares fell about 2% Thursday as UBS and Citi maintained Buy recommendations.
  • $1,046.37 was Micron’s premarket share price after a nearly 600% one-year gain.
  • December 9 marks the scheduled end of buyback and special-dividend restrictions tied to 2024 Chips Act funding.

Micron Technology shares fell approximately 2% Thursday morning to $1,046.37 during premarket hours, despite gaining nearly 600% over the past year. UBS analyst Timothy Arcuri maintained a Buy recommendation and raised his price target to $1,625, while Citi analyst Atif Malik kept his Buy rating and lifted his target from $1,150 to $1,300. Both analysts pointed to increasingly constrained memory markets, supported by artificial-intelligence server demand and stronger DRAM (dynamic random-access memory) pricing. Micron is scheduled to report fiscal fourth-quarter results on Sept. 30, with Arcuri projecting revenue of $52.4 billion and earnings per share of $32.50, and Malik forecasting $51 billion in revenue and EPS of $31.45. Citi expects blended DRAM prices to rise 20% sequentially in the fiscal fourth quarter and another 13% in the following quarter. Restrictions on large-scale share buybacks and special dividends tied to Micron’s 2024 Chips Act funding are scheduled to end on Dec. 9. Arcuri expects buybacks could begin at about $20 billion per quarter and approach $50 billion per quarter by the end of fiscal 2027, while Citi projects roughly $50 billion in fiscal 2027 capital spending. The Sept. 30 results will test whether pricing strength is translating into the earnings analysts anticipate.

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