Micron Technology (MU) Maintains Buy Rating Despite Short-Term Challenges, Sets $150 Price Target

Citi maintains a Buy rating for Micron Technology (MU) with a price target of $150, but anticipates short-term challenges due to stabilized DRAM pricing and concerns about oversupply in high bandwidth memory. The firm advises caution in the short term despite a long-term positive view on Micron's prospects. Analysts forecast an average target price of $143.85 with a high estimate of $200.00 and a low estimate of $60.00, indicating a 27.01% upside from the current price.

Micron Technology, Inc. (MU), a leading provider of innovative memory and storage solutions, has seen its stock experience significant volatility in recent days. Analysts, however, remain optimistic about the company's long-term prospects, despite short-term challenges.

On July 17, 2025, Micron's stock dropped 3.4% in pre-market trading, reflecting ongoing market volatility and investor concerns [3]. This decline came after the company's third-quarter report, which highlighted strong revenue growth in DRAM and NAND markets, but also raised concerns about pricing and supply chain issues [2].

Citi maintains a Buy rating for Micron with a price target of $150, but anticipates short-term challenges due to stabilized DRAM pricing and concerns about oversupply in high bandwidth memory [4]. The firm advises caution in the short term despite a long-term positive view on Micron's prospects.

Analysts forecast an average target price of $143.85 with a high estimate of $200.00 and a low estimate of $60.00, indicating a 27.01% upside from the current price [2]. This positive outlook is driven by Micron's robust performance in the data center and automotive sectors, as well as its progress in high bandwidth memory technology.

However, Micron faces several challenges. DRAM and NAND prices decreased in the low single-digit and high single-digit percentage ranges, respectively, in the third quarter [2]. Additionally, the company is facing tariff-related pull-ins by certain customers and ongoing challenges with customer qualifications for high bandwidth memory technologies [2].

Despite these challenges, Micron's strategic investments in the US, including a planned $200 billion investment over the next 20-plus years, position the company for long-term growth [2]. The company's technological advancements, such as its progress in 1-gamma DRAM technology and recent patent acquisitions, also strengthen its competitive position [3].

In conclusion, while Micron Technology faces short-term challenges, analysts remain optimistic about its long-term prospects. Investors should exercise caution in the short term but monitor the company's progress in the storage sector and changes in the macroeconomic environment for potential long-term opportunities.

References:
[1] https://www.cnn.com/markets/stocks/MU
[2] https://www.gurufocus.com/news/2985688/micron-mu-sees-positive-outlook-amid-stock-pullback-mu-stock-news
[3] https://www.ainvest.com/news/micron-technology-mu-drops-3-4-market-volatility-2507/
[4] https://www.ainvest.com/news/micron-stock-plummets-2-72-consecutive-day-losses-trading-volume-ranks-22nd-38-93-billion-2507/