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Micron Technology (MU) stock fell 2% on Wednesday after Wells Fargo lowered its price target for the memory-chip maker, while Citi raised its target on expectations for stronger DRAM pricing.
Despite the differing target changes, both firms remained bullish on Micron.
Wells Fargo analyst Aaron Rakers cut the firm’s price target to $1,400 from $1,525 while maintaining an ‘Overweight’ rating.
Citi analyst Atif Malik raised his target to $1,300 from $1,150 and kept a ‘Buy’ rating on the stock.
Wells Fargo remains bullish on Micron
Wells Fargo said it remains bullish on Micron heading into the fourth quarter, citing continued upside to near-term results.
The firm said the next phase of Micron’s performance would depend on investors gaining greater confidence in the duration of the current memory shortage.
It also highlighted the expansion of Strategic Customer Agreement (SCA) engagements and Micron’s execution as factors that could influence the company’s performance.
The lower Wells Fargo price target comes even as the firm maintains its positive view of the memory-chip maker.
Citi raises target on DRAM strength
Citi raised its price target after increasing its estimates for Micron’s August and November quarters.
Malik cited stronger-than-expected DRAM pricing and continued undersupply across both DRAM and NAND markets as reasons for the revised outlook.
Citi expects Micron stock to rally into SEMICON West, scheduled for October 13, where semiconductor equipment makers are expected to discuss the ongoing DRAM shortage.
The firm also expects Micron to report upside to its fiscal fourth-quarter estimates, helped by tight supply conditions across its memory businesses.
“We model F4Q26 sales/EPS of $51B/$31.45, above consensus of $50.8B/$31.43 and F1Q27 sales/EPS of $57B/$35.25, above consensus of $56.7B/$35.15,” Citi analyst Atif Malik wrote in a note to clients.
Citi raised its near-term NAND and DRAM pricing assumptions for non-SCA contracted bits.
The firm expects blended DRAM average selling prices to rise 20% and 13% quarter-over-quarter in the fiscal fourth and first quarters, respectively.
It forecasts blended NAND ASPs to increase 34% and 15% over the same periods.
Citi expects Micron’s volume and bit growth to remain broadly in line with the industry in 2026.
It also models fiscal 2027 capital expenditure of $50 billion, including shell spending in the low $20 billions and the remainder on equipment.
Malik said DRAM and NAND markets are likely to remain “undersupplied” because of strong AI demand for the foreseeable future.
However, he expects pricing growth to decelerate over the next four quarters and peak in the second quarter of 2027.
Michael Burry adds to Micron short
The Wall Street analysts’ moves come as Michael Burry, the investor known for his role in “The Big Short,” added to his Micron short position on Tuesday.
Burry said he increased his MU shorts “in some size” and cited comments from Acer CEO Jason Chen suggesting Chinese memory-chip production could eventually ease supply constraints and put pressure on prices.
“Interpreting this news, which is from a few days ago, before the big run up yesterday, is fraught,” Burry wrote. “Nevertheless, it aligns with what I believe to be true.”
Burry’s bearish positioning extends beyond Micron.
He also holds short positions in iShares Semiconductor (SOXX), Palantir (PLTR), Nebius (NBIS), Nvidia (NVDA) and other AI-related names.
The contrasting views leave Micron investors weighing expectations for continued tight memory supply and strong AI-driven demand against the possibility that additional production could eventually ease shortages and pressure pricing.
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