Citi Predicts Micron to Shatter Earnings Estimates with Soaring AI-Driven Demand

Citi is gearing up for a major shocker in Micron Technology's (NASDAQ: MU) upcoming earnings report. Their analysts anticipate a big upside surprise fueled by soaring memory prices and robust artificial intelligence-related demand, setting the stage for a "significant beat and raise."

According to Citi's Christopher Danely, the chipmaker is riding an unprecedented wave in DRAM pricing, with a 50% jump quarter-over-quarter in Q4 2025-well ahead of previous forecasts. This pricing surge is not the only catalyst; Micron's high-bandwidth memory (HBM) is reportedly sold out for 2026, emphasizing the tight supply dynamics in the sector.

The firm's bullish stance sees Micron's fiscal Q1 2026 revenue hitting $14 billion, which dwarfs the company's own guidance of $12.5 billion and consensus estimates around $12.6 billion. Danely also projects earnings per share at $4.07, climbing well above Wall Street's $3.52 expectation, thanks to healthier-than-expected gross margins.

Looking further ahead, Citi is forecasting fiscal Q2 2026 revenue at a staggering $17 billion-far beyond the $13.2 billion consensus. Their EPS guess of $6.18 crushes the average $3.75 on the street, painting a picture of sustained momentum in memory demand driven by AI infrastructure build-out.

What's underpinning this optimism? Citi points out that AI players are locking into long-term DRAM supply contracts, funneling significant capital investments that will no doubt spur new fabrication facilities across the semiconductor industry. This dynamic seems set to reshape supply chains and market fundamentals alike.

Indeed, Citi has lifted its full-year outlook, nudging Micron's 2026 sales forecast from $64 billion up to $68 billion and EPS estimates from $21.54 to $24.51 - the latter standing 52% above consensus. This divergence underscores a market that may be underestimating the pace and scale of AI-fueled memory demand.

Consequently, Citi has maintained its Buy rating and boosted its price target from $275 to $300, branding Micron as one of the clearest winners amid accelerating AI-driven memory consumption. So, if forecasts hold water, the stock could be in for a wild ride post-earnings.

All eyes will be on Micron when it reports after the bell on December 17, as traders digest whether the semiconductor giant can sustain this pricing power and supply tightness. The evolving AI landscape continues to throw curveballs, and Micron's results might just be the next headline-grabbing performance in tech earnings.