Micron Technology (MU) Gets Buy Rating from Citi despite “Sluggish” PC Demand

Citi reaffirmed its Buy rating and $150 price target for semiconductor stock Micron Technology (MU), even after mixed data points from the Consumer Electronic Show (CES). Analyst Christopher Danely, who has a 4.4-star rating on TipRanks, noted that PC demand is “a little sluggish,” but smartphone demand appears “okay.” Despite this, Micron shares are slightly down at the time of writing as the memory market works to stabilize.

Danely explained that DRAM inventory for PCs is near optimal levels, which is a “mild negative” for AMD (AMD), Intel (INTC), and Micron, given their heavy reliance on PC sales (28%, 55%, and 15% of revenue, respectively). In contrast, the elevated DRAM inventory in smartphones is expected to normalize by spring 2025, benefiting Qualcomm (QCOM), which gets 74% of its revenue from mobile devices.

Citi remains optimistic that DRAM inventory across both markets will normalize by the second quarter of 2025, with DRAM prices expected to stop declining. Danely’s outlook reflects confidence in the market’s ability to recover despite near-term inventory imbalances in the smartphone supply chain. It’s worth noting that, so far, Danely has enjoyed a 51% success rate on MU stock, with an average return of 4.9% per rating.

Is MU a Good Stock to Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on MU stock based on 20 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 20% rally in its share price over the past year, the average MU price target of $136.43 per share implies 37.3% upside potential.

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