Citi Downgrades Micron, Predicts Memory Price Peak in May Next Year

Citi cuts Micron rating, forecasting DRAM/NAND price peaks by May next year. Adjusted models show slowing quarterly gains and potential H2 2027 declines due to CXMT/YMTC expansion.

Woofun AI reports that Citi has downgraded Micron's rating, projecting that DRAM and NAND price increases will decelerate over the next four quarters, with prices peaking in the fiscal quarter corresponding to May next year. The bank revised its DRAM quarterly sequential growth forecasts from 23%, 10%, 2%, and 0% to 23%, 9%, 2%, and 0% for the periods starting in August through May. Citi anticipates a 3% price decline for DRAM in the second half of 2027 compared to the first half.

NAND quarterly sequential growth estimates were adjusted from 29%, 9%, 1%, and 0% to 29%, 7%, 0%, and -1%, with a projected 5% price drop in the second half of 2027 versus the first half. Citi attributed these lower price expectations to capacity expansion efforts by CXMT and YMTC. U.S.-listed storage chip equities experienced significant declines following the announcement.