"Citi's 16% price target reduction carries real weight. The bank specifically cited softness in DDR5 DRAM pricing as a near-term margin concern, and that's a real dynamic in the consumer and PC memory segments."
"The concern is that the headline gross margin story, which reached 56% in fiscal Q1 2026, could face pressure in future quarters if consumer memory pricing softens faster than AI memory pricing can offset it."
"Alphabet's TurboQuant memory-compression algorithm has now triggered multiple separate waves of selling in memory stocks. Even if the technology's long-term impact is debatable, the market has repriced Micron lower on TurboQuant concerns more than once."
Micron Technology's stock dropped 6% to $347 after a significant 8.88% rally, following a 16% price target cut from Citi. This reduction was attributed to softness in DDR5 DRAM pricing and concerns regarding Google's TurboQuant memory-compression technology. The market's reaction is influenced by the upcoming Good Friday holiday, with traders adjusting positions. Despite the decline, Micron's stock is still up 29% year-to-date, indicating a complex situation where both bullish and bearish perspectives hold validity.
Read at 24/7 Wall St.
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