Micron Stock Jumps After Citi Lifts Price Target On AI Memory Boom

Oct 16 - Micron Technology MU climbed more than 5% on Thursday trading after Citi raised its price target to $240 on the chipmaker, pointing to an upcoming wave of artificial intelligence-driven demand for dynamic random-access memory, or DRAM.

Citi analysts said they expect AI applications to spark an unprecedented increase in memory chip requirements as data centers and cloud service providers expand capacity to handle generative AI workloads.

The brokerage added that Micron is well-positioned to benefit from this trend due to its improving production efficiency and exposure to high-bandwidth memory, a key component in AI servers.

Shares of Micron have gained about 25% over the past three months, supported by stronger pricing in the memory market and expectations of a cyclical recovery in semiconductor demand through 2026.