Micron Gains as DRAM Shortage Outlook Lifts Targets

Key Moments

Micron Technology shares rose around 2.7% in premarket trading after Deutsche Bank and Citi boosted their price targets.
Deutsche Bank now sees DRAM supply tightness potentially lasting well into 2028 and beyond, even with recent capacity additions.
Citi projects DRAM average selling prices to jump 200% in 2026, with spot prices already 52% higher year-to-date and 21% above contract levels.

Analyst Upgrades Drive Premarket Move

Micron Technology, Inc. (NASDAQ:MU) traded higher in premarket action on Wednesday, climbing around 2.7% after analysts at Deutsche Bank and Citi raised their price targets. Both firms pointed to an increasingly tight supply-demand backdrop in the DRAM market, which they expect to extend well beyond 2026.

Deutsche Bank Sees Extended DRAM Tightness

Deutsche Bank analyst Melissa Weathers increased her price target on Micron to $1,500 from $1,000, citing a deepening imbalance between DRAM bit supply growth and demand. She said DRAM supply tightness “could persist well into 2028 and potentially beyond” as supply continues to trail demand.

Weathers highlighted that her view has become more constrained since her prior update, which had anticipated a shortage through at least 2027. She now expects the next phase of tightness to be fueled by rising demand for both traditional and low-power DRAM, as agentic AI makes computing workloads increasingly memory intensive.

She also emphasized that these conditions are anticipated to hold “even despite new and accelerated capacity additions announced in the last 180 days.”

Citi Lifts Target and Earnings Outlook

Citi analyst Atif Malik raised his price target on Micron to $1,200, alongside higher fiscal 2026 and 2027 earnings forecasts. The revisions reflect better-than-expected memory pricing performance year-to-date.

Malik projects that DRAM average selling prices will rise 200% in 2026, supported by strong data center demand and constrained supply. According to Citi, spot DRAM prices are already up 52% since the start of January and stand 21% above current contract prices, a spread the firm says signals additional upside for contract pricing.

Summary of Analyst Targets and Outlook

Firm	Analyst	New Price Target	Previous Price Target	Key Drivers
Deutsche Bank	Melissa Weathers	$1,500	$1,000	Prolonged DRAM supply tightness, growing demand from agentic AI, lagging bit supply growth
Citi	Atif Malik	$1,200	Not specified	Stronger-than-expected memory pricing, forecast 200% DRAM ASP increase in 2026, robust data center demand

DRAM Pricing Dynamics and Earnings Expectations

Citi highlighted the divergence between spot and contract pricing in DRAM, noting that spot prices have risen 52% since the beginning of January and currently exceed contract prices by 21%. The bank said this differential points toward further contract price increases ahead.

Micron is scheduled to report its fiscal third-quarter results on June 24. Citi’s fiscal 2027 earnings per share estimate for Micron stands at $114.73, which the firm said is 4% above the current Street consensus.