Since Donald Trump’s reelection, Micron Technology has been at the forefront of America’s AI-driven chip industry boom.

However, a major Wall Street player has sounded an alarm for the California-based company following its recent earnings announcement.

Citigroup stirred the market by slashing Micron’s price target from $510 to $425. This move came in response to an approximately 6% decline in spot prices for standard RAM products since March 18, according to the Fresno Bee.

At first glance, Micron’s recent earnings report appeared to be a triumph.

The company saw its revenue nearly triple compared to the previous year, reaching $23.86 billion. CEO Sanjay Mehrotra celebrated the results, noting record-breaking performance in revenue, profit margins, earnings per share, and free cash flow.

Nevertheless, Wall Street remains forward-thinking and is exercising increased caution.

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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