This article first appeared on GuruFocus.
Citi reduced its price target on Micron Technology (NASDAQ:MU) to $425 from $510, citing a 6% decline in mainstream DDR5 DRAM prices since the company reported quarterly results on March 18.
The bank also pointed to Google’s TurboQuant compression technique as a factor weighing on spot prices.
Micron shares have fallen about 19% since Google detailed the method in a research blog post on March 24.
Citi analysts said memory suppliers are negotiating multiyear agreements with hyperscale customers to lock in base volumes and prepayments. Such contracts, which may include quarterly pricing adjustments, could support contract prices, the firm noted.
TurboQuant reduces the memory footprint of AI models through quantization techniques. Citi said the efficiency gains could ultimately increase overall compute demand, similar to the effect seen after DeepSeek’s earlier breakthrough.
