Micron (MU) AI Stock Analysis

• Market Cap: $299.25B
• Dividend Yield: 0.2%
• Average Volume (3M): 27.50M
• Price to Earnings (P/E): 25.3
• Beta (1Y): 2.59
• Revenue Growth: 45.43%
• EPS Growth: 203.31%
• Country: US
• Employees: 48,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 4.78
• Shares Outstanding: 1,125,509,300
• 10 Day Avg. Volume: 32,366,328
• 30 Day Avg. Volume: 27,497,160
• PEG Ratio: 0.02
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 3.64
• P/FCF Ratio: 81.63
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 6.17
• Enterprise Value/Gross Profit: 13.62
• Enterprise Value/Ebitda: 11.64
• 1Y Price Target: $312.11
• Price Target Upside: 12.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 29
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $285.00 ▲(3.04% Upside)

Micron's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust revenue growth, profitability, and strategic positioning in AI and HBM markets are key strengths. Technical indicators support a positive outlook, although valuation metrics suggest moderate expectations. Supply constraints and increased CapEx are risks to monitor.

Positive Factors

Revenue Growth

Micron's projected revenue growth underscores its strong market position and demand for its products, particularly in AI and HBM markets, indicating sustained business expansion.

Technological Advancements

Advancements in DRAM and NAND technologies enhance Micron's competitive edge, ensuring it remains at the forefront of semiconductor innovation and meets future demand.

Cash Generation

Strong cash generation capacity supports Micron's ability to invest in growth opportunities and manage financial obligations, contributing to long-term stability.

Negative Factors

Supply Constraints

Persistent supply constraints could limit Micron's ability to fully capitalize on demand, potentially impacting revenue and market share growth.

Increased CapEx

Higher capital expenditures may strain financial resources and affect profitability if not matched by proportional revenue growth.

Board Member Retirements

The retirement of key board members could lead to strategic shifts and potential disruptions in governance, impacting long-term strategic direction.

Micron Business Overview & Revenue Model

Company Description

Micron Technology, Inc. (MU) is a leading global provider of advanced semiconductor solutions, primarily focusing on memory and storage technologies. The company operates in the semiconductor sector and specializes in designing and manufacturing DRAM (Dynamic Random-Access Memory), NAND flash memory, and storage solutions. Micron's products are utilized in a wide range of applications, including personal computers, servers, mobile devices, automotive systems, and industrial equipment, enabling enhanced performance and efficiency across various technologies.

How the Company Makes Money

Micron generates revenue primarily through the sale of its memory and storage products, with DRAM and NAND flash memory being the key contributors. The company operates on a volume-based revenue model, where it earns money by selling its products to original equipment manufacturers (OEMs), data centers, and consumer electronics companies. Significant partnerships with major tech companies and OEMs help bolster its market presence and ensure steady demand for its products. Additionally, Micron benefits from strategic collaborations and long-term supply agreements that provide stability to its revenue streams. The company's revenue is also influenced by market dynamics, such as global demand for memory solutions, pricing trends, and technological advancements in the semiconductor industry.

Micron Financial Statement Overview

Summary

Micron demonstrates strong financial health with robust revenue growth, profitability, and cash generation. The company has effectively managed its leverage and equity, maintaining a solid balance sheet. While historical volatility in margins and cash flow presents potential risks, the current trajectory indicates a well-positioned company in the semiconductor industry.

Income Statement

Micron's income statement shows strong performance with a significant revenue growth rate of 13.2% in the TTM period, indicating robust demand and market position. The gross profit margin of 39.79% and net profit margin of 22.84% reflect efficient cost management and profitability. EBIT and EBITDA margins are also healthy at 27.10% and 49.45% respectively, showcasing operational efficiency. However, the company experienced a challenging period in 2023 with negative margins, which could indicate potential volatility.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.28, indicating a conservative leverage position. The return on equity (ROE) is 17.05%, reflecting effective use of equity to generate profits. The equity ratio stands at 68.42%, suggesting a strong equity base relative to assets. Despite these strengths, the company has seen fluctuations in equity and debt levels over recent years, which could pose risks if not managed carefully.

Cash Flow

Micron's cash flow statement is impressive with a substantial free cash flow growth rate of 93.77% in the TTM period, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 1.53 indicates efficient conversion of income to cash. The free cash flow to net income ratio of 50.95% further supports the company's ability to generate cash. However, historical fluctuations in free cash flow, particularly in 2023, suggest potential volatility in cash flow management.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.38B	25.11B	15.54B	30.76B	27.70B
Gross Profit	14.87B	5.61B	-1.42B	13.90B	10.42B
EBITDA	18.49B	8.94B	2.21B	16.74B	12.93B
Net Income	8.54B	778.00M	-5.83B	8.69B	5.86B
Balance Sheet
Total Assets	82.80B	69.42B	64.25B	66.28B	58.85B
Cash, Cash Equivalents and Short-Term Investments	10.31B	8.11B	9.59B	9.33B	8.63B
Total Debt	15.28B	14.01B	13.93B	7.52B	7.28B
Total Liabilities	28.63B	24.29B	20.13B	16.38B	14.92B
Stockholders Equity	54.16B	45.13B	44.12B	49.91B	43.93B
Cash Flow
Free Cash Flow	1.67B	121.00M	-6.12B	3.11B	2.44B
Operating Cash Flow	17.52B	8.51B	1.56B	15.18B	12.47B
Investing Cash Flow	-14.09B	-8.31B	-6.19B	-11.59B	-10.59B
Financing Cash Flow	-850.00M	-1.84B	4.98B	-2.98B	-1.78B

Micron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 276.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MU, the sentiment is Positive. The current price of 276.59 is above the 20-day moving average (MA) of 242.12, above the 50-day MA of 229.27, and above the 200-day MA of 142.24, indicating a bullish trend. The MACD of 8.65 indicates Negative momentum. The RSI at 65.04 is Neutral, neither overbought nor oversold. The STOCH value of 83.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MU.

Micron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MU	79 Outperform	$299.25B	25.28	22.55%	0.20%	45.43%	203.31%
AMAT	77 Outperform	$203.32B	29.61	35.51%	0.69%	4.47%	0.48%
WDC	77 Outperform	$61.91B	26.40	31.48%	0.18%	-16.35%	316.56%
NVDA	76 Outperform	$4.40T	44.83	107.36%	0.02%	65.22%	58.53%
AMD	73 Outperform	$347.47B	106.23	5.32%	―	31.83%	80.45%
INTC	64 Neutral	$175.63B	3,431.13	0.19%	―	-1.49%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Micron Corporate Events

Micron Announces Board Member Retirements

On October 21, 2025, Micron Technology announced that Richard M. Beyer and Mary Pat McCarthy will retire from the Board of Directors at the annual shareholders meeting on January 15, 2026. Beyer and McCarthy, who have served since 2013 and 2018 respectively, have played significant roles in guiding Micron through growth and transformation, with Beyer contributing strategic leadership and McCarthy offering expertise in financial oversight. Their departure will leave the board with eight directors, and the company has nominated the remaining directors for reelection.