Micron (MU) AI Stock Analysis

• Market Cap: $449.81B
• Dividend Yield: 0.2%
• Average Volume (3M): 30.44M
• Price to Earnings (P/E): 37.8
• Beta (1Y): 2.56
• 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: 31,973,012
• 30 Day Avg. Volume: 30,436,698
• 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: 1.01
• Enterprise Value/Revenue: 10.72
• Enterprise Value/Gross Profit: 23.65
• Enterprise Value/Ebitda: 20.21
• 1Y Price Target: $374.35
• Price Target Upside: -6.33% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 28
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $414.00 ▲(3.59% Upside)

Score is driven primarily by strong financial performance (profitability, cash generation, and conservative leverage) and a bullish earnings outlook with record results and upbeat guidance. Offsetting factors are overbought technical signals and a relatively expensive valuation (P/E 34.48) with a low dividend yield.

Positive Factors

Free cash flow generation

Micron's strong free cash flow growth and efficient conversion (OCF/net income >1) provide durable internal funding for R&D, fabs, and strategic contracts. Over 2–6 months this underpins capacity investments and resilience versus cyclic revenue swings, supporting long-term execution.

Advanced product & node leadership

Micron's ramp of advanced DRAM/NAND nodes and leadership in HBM4 align with structurally increasing AI and HBM demand. Technical differentiation and node roadmap create sustainable competitive advantages, higher ASP potential, and durable share gains as data-center and AI workloads scale through 2028.

Conservative leverage & equity base

A low debt-to-equity ratio and strong equity base give Micron financial flexibility to fund multiyear megafab builds and elevated CapEx cycles without excessive leverage. This reduces refinancing risk during downturns and supports consistent investment in capacity and technology over multiple cycles.

Negative Factors

Persistent supply constraints

Chronic supply shortages limit Micron's ability to capture near-term demand and can force customer rationing or defections. Over months this constrains revenue realization, complicates long-term OEM relationships, and may allow rivals to secure share where Micron cannot meet committed volumes.

Very large near-term CapEx needs

A ~ $20B CapEx program is structurally necessary to expand supply but raises execution, funding allocation, and timing risk. Multiyear spending can strain FCF, delay returns on investment, and requires flawless execution of megafab projects to convert capacity into sustained revenue and margin expansion.

Industry cyclicality and historical volatility

Memory market cyclicality has produced wide swings in margins and cash flow historically. This structural volatility makes forecasting earnings and capacity utilization difficult, forces conservative capital planning, and increases the likelihood of boom-bust impacts on profitability across 2–6 month horizons.

Micron Business Overview & Revenue Model

Company Description

Micron Technology, Inc. designs, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. It provides memory and storage technologies comprises DRAM products, which are dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; NAND products that are non-volatile and re-writeable semiconductor storage devices; and NOR memory products, which are non-volatile re-writable semiconductor memory devices that provide fast read speeds under the Micron and Crucial brands, as well as through private labels. The company offers memory products for the cloud server, enterprise, client, graphics, and networking markets, as well as for smartphone and other mobile-device markets; SSDs and component-level solutions for the enterprise and cloud, client, and consumer storage markets; other discrete storage products in component and wafers; and memory and storage products for the automotive, industrial, and consumer markets. It markets its products through its direct sales force, independent sales representatives, distributors, and retailers; and web-based customer direct sales channel, as well as through channel and distribution partners. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho.

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

Strong profitability and growth indicators (TTM revenue growth 13.2%, gross margin 39.79%, net margin 22.84%) alongside solid cash generation (TTM free cash flow growth 93.77%, operating cash flow to net income 1.53). Balance sheet leverage is conservative (debt-to-equity 0.28, equity ratio 68.42%), though prior-year margin and cash-flow volatility is a risk.

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: 399.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 399.65 is above the 20-day moving average (MA) of 334.72, above the 50-day MA of 277.70, and above the 200-day MA of 167.53, indicating a bullish trend. The MACD of 32.97 indicates Negative momentum. The RSI at 78.80 is Negative, neither overbought nor oversold. The STOCH value of 92.52 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
WDC	80 Outperform	$80.82B	35.47	31.48%	0.18%	-16.35%	316.56%
MU	77 Outperform	$449.81B	37.79	22.55%	0.20%	45.43%	203.31%
AMAT	77 Outperform	$255.63B	36.81	35.51%	0.69%	4.47%	0.48%
NVDA	76 Outperform	$4.56T	45.78	107.36%	0.02%	65.22%	58.53%
AMD	73 Outperform	$422.77B	128.34	5.32%	―	31.83%	80.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INTC	54 Neutral	$224.66B	-550.31	0.19%	―	-1.49%	―

Micron Corporate Events

Micron Shareholders Back Leadership, Governance Changes at Meeting

At Micron Technology’s fiscal 2025 annual meeting of stockholders held on January 15, 2026, shareholders re-elected eight directors to the board, including CEO Sanjay Mehrotra, with strong majorities for most nominees, reinforcing continuity in the company’s leadership. Investors also approved on an advisory basis the compensation of Micron’s named executive officers, backed an amendment to the company’s Restated Certificate of Incorporation to add Delaware-law officer exculpation protections, and ratified PricewaterhouseCoopers LLP as independent auditor for the fiscal year ending September 3, 2026, while a shareholder proposal to expand special meeting rights failed to secure enough support, signaling stockholder alignment with existing governance structures and management’s strategic direction.

The most recent analyst rating on (MU) stock is a Buy with a $360.00 price target. To see the full list of analyst forecasts on Micron stock, see the MU Stock Forecast page.