It has been the poster child for America’s AI-driven chip boom since Donald Trump’s reelection.
But a Wall Street giant has issued a doomsday warning for California-based Micron Technology after its latest earnings call.
Citigroup sent ripples through the market by cutting Micron’s price target from $510 to $425, citing a roughly 6% drop in spot prices for mainstream RAM products since March 18, the Fresno Bee reports.
On the surface, Micron’s latest earnings looked like a victory lap.
Revenue nearly tripled year over year to $23.86 billion, while CEO Sanjay Mehrotra highlighted record performance across revenue, margins, earnings per share and free cash flow.
But Wall Street is forward-looking — and increasingly cautious.
In simple terms, despite blockbuster growth, investors are beginning to question how long the boom can last.
Falling memory chip prices are raising concerns that demand could soften, potentially pressuring future earnings even as current results remain strong.
Adding to those concerns is a new efficiency push from Google.
Its research team recently introduced “TurboQuant,” a tool designed to reduce the memory required for AI workloads.
While that could lower costs and improve performance, it has also sparked fears that future demand for high-end memory chips could weaken.
Still, the broader picture is more nuanced.
Citigroup maintained its “Buy” rating on Micron, signaling confidence in the long-term AI-driven demand for memory.
The bank also noted that improved efficiency could ultimately increase usage, offsetting any reduction in per-task memory needs.
Under the Trump Administration’s aggressive “America First” semiconductor policies, Micron became a strategic crown jewel.
To counter Chinese spying fears and reduce reliance on foreign-made chips, the administration slapped a 25% tariff on Chinese semiconductors in early 2026, effectively forcing big tech companies to buy American.
As a result, Micron spiked alongside Nvidia, with investors treating the Idaho-based firm (often mistaken for a Silicon Valley native due to its massive scale) as the “memory backbone” of the U.S. AI movement.
Micron remains one of the few major suppliers of advanced memory chips critical to AI infrastructure, alongside global rivals, and continues to benefit from strong demand from data centers and hyperscale computing companies.
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