Citi Lowers Micron Price Target to $425 After 6% DDR5 Price Drop
Citi cut its price target on Micron Technology to $425 from $510, citing a 6% decline in DDR5 DRAM prices since March 18 and Google's TurboQuant algorithm reducing AI model memory sixfold. Micron shares have fallen about 19% since the TurboQuant announcement on March 24 as hyperscale contract dynamics evolve.
1. Citi Cuts Price Target
Citi reduced Micron Technology’s price target to $425 from $510, a 17% decrease reflecting recent shifts in market conditions. The revision factors in a 6% drop in DDR5 DRAM spot prices since the company’s March 18 quarterly report.
2. DDR5 Spot Price Pressure
Mainstream DDR5 DRAM prices have fallen roughly 6% since March 18, coinciding with a 19% share decline after Google's March 24 TurboQuant announcement, which slashes AI model memory requirements by sixfold. This sell-off intensified concerns over DRAM demand.
3. Hyperscale Contracts Could Stabilize Prices
Memory suppliers are negotiating multiyear agreements with hyperscale cloud customers to secure base volumes and upfront payments, with quarterly pricing adjustments. Such contracts could cushion contract prices and mitigate further spot-market volatility.