NEW YORK, August 7, 2026, 14:09 EDT — U.S. markets are trading.
- Micron dropped 1.2% to $870.66, with its intraday trading range surpassing 8%.
- The projected loss over two sessions stood at 2.5%. Shares of Western Digital Corp. NASDAQ:WDC dropped roughly 17%, and Sandisk Corp. NASDAQ:SNDK slid 9.1%.
- Citigroup Inc. NYSE:C lowered its price target by 18% to $1,150, while maintaining a Buy rating and highlighting Micron’s multi-year pricing contracts.
Micron stock declined on Friday following Citi’s price target cut. This drop occurred even as the wider U.S. technology sector advanced. July payroll numbers decreased by 23,000 unexpectedly, reducing the likelihood of a rate hike in September.
The move was notable in relative terms. Micron’s drop across two sessions was still much less severe than declines seen in other storage stocks. This difference indicates investors see some value in Micron’s DRAM portfolio and its customer agreements.
| Memory and storage stock | Thursday change | Friday closing price | Friday change | Estimated two-day change |
|---|---|---|---|---|
| Micron | -1.3% | $870.66 | -1.2% | -2.5% |
| Western Digital | -13.0% | $430.70 | -4.6% | -17.0% |
| Sandisk | -6.8% | $1,228.00 | -2.4% | -9.1% |
| Seagate Technology Holdings plc NASDAQ:STX | +1.8% | $804.96 | -5.6% | -3.9% |
*Preliminary intraday figures as of 14:09 EDT. The two-session totals reflect compounded rounded daily moves.
Shares dropped on Thursday after robust results from peers failed to meet heightened expectations. Both Western Digital and Sandisk projected revenue ahead of analyst forecasts. Despite this, investors sold off both companies on signs that anticipated pricing improvements were losing momentum.
Citi analyst Atif Malik lowered his price target on Micron to $1,150 from $1,400, while reiterating his Buy rating. Malik stated, “We see both DRAM and NAND prices decelerating Q/Q in the next four quarters.” He projects prices will reach their highest point in the second quarter of 2027. TipRanks
Citi forecasts that Micron’s gross margin will decline to around the mid-70% range in the coming year, placing it about 10 percentage points under the company’s guidance for the fourth quarter. Still, around 40% of Micron’s DRAM bits are tied to long-term pricing contracts.
The contract backlog is significant. Micron secured 16 major customer agreements with commitments worth $22 billion. Total remaining performance obligations stand near $100 billion. The five-year agreements contain take-or-pay provisions, deposits, and minimum pricing.
| Micron operating metric | Fiscal Q2 2026 | Fiscal Q3 2026 | Fiscal Q4 guidance | Q3-to-Q4 change |
|---|---|---|---|---|
| Revenue | $23.86 billion | $41.46 billion | $50.0 billion ± $1.0 billion | +20.6% |
| Non-GAAP gross margin | 74.9% | 84.9% | Approximately 86% | +1.1 points |
| Non-GAAP diluted EPS | $12.20 | $25.11 | $31.00 ± $1.00 | +23.5% |
The company’s projection for the fourth quarter is shown, rather than actual results.
The outlook for near-term earnings continues to be solid. Micron is projecting approximately $10 billion in capital expenditures for the fourth quarter, which represents an increase of about 41% compared to the $7.1 billion spent in fiscal Q3.
Chief Executive Sanjay Mehrotra stated that the deals are expected to “significantly enhance the durability and predictability” of Micron’s performance. Investors are now evaluating that assertion ahead of the peak in the pricing cycle. SEC
| Analyst view | Three months prior | One month prior | Latest |
|---|---|---|---|
| Buy | 37 | 41 | 43 |
| Overweight | 9 | 8 | 9 |
| Hold | 3 | 3 | 4 |
| Underweight | 1 | 0 | 0 |
| Sell | 0 | 0 | 0 |
| Consensus | Buy | Buy | Buy |
Analyst numbers and categories are based on the latest survey by The Wall Street Journal.
Investor confidence on Wall Street remains strong. The survey indicates no Sell or Underweight ratings at present. Citi’s downgrade highlights that the impact is instead shifting to valuation multiples and longer-term margin forecasts.
| Valuation or target measure | Value | Read-through from $870.66 |
|---|---|---|
| 52-week high | $1,255.00 | Shares are 30.6% under |
| Fiscal 2027 consensus EPS | $154.67 | P/E multiple at 5.6 |
| Fiscal 2028 consensus EPS | $166.89 | P/E multiple at 5.2 |
| Citi price target | $1,150.00 | 32.1% higher |
| Average analyst target | $1,554.51 | Up 78.5% |
Potential target upside and projected multiples are initial estimates based on the 14:09 EDT price.
The primary indication for investors is the low forward multiple. This indicates that the market considers anticipated 2027 earnings to be cyclical rather than lasting. While Micron’s contracts could help establish a higher earnings floor, they have not eliminated the discount applied to peak earnings.
Risks: The deals apply to a portion of Micron’s DRAM production. Citi forecasts a deceleration in price increases and projects decreasing margins in the coming year. Malik pointed out rising Chinese DRAM and NAND production as the main long-term risk.
Micron is set to participate in the KeyBanc Technology Leadership Forum on Monday. Market watchers will look for updates on 2027 margin targets, contract coverage and capital discipline. This marks the next key assessment.
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