Micron (MU)
NASDAQ:MU
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Micron
(NASDAQ:MU)
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Rating:75Outperform
Price Target:
$458.00
▲(21.30% Upside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by strong financial performance (high margins and strong cash generation with low leverage) and an upbeat earnings call with record guidance and technology execution. These positives are tempered by weak technical momentum (below key moving averages with negative MACD) and the inherent cyclicality/CapEx execution risks highlighted by management.
Positive Factors
Cash generation & balance sheet
Material, sustained cash generation and a conservative balance sheet give Micron durable financial flexibility to fund multi‑year fab builds, sustain dividends and opportunistic buybacks, and reduce debt. Strong OCF/FCF supports capex funding while preserving liquidity through cycles.
Negative Factors
Very high, rising capital intensity
Massive, multi‑year capital commitments materially increase execution and funding risk: on‑time and on‑budget fab builds are hard to deliver, cash demands spike before revenue from new capacity arrives, and missteps could pressure returns and tie up liquidity during downcycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & balance sheet
Material, sustained cash generation and a conservative balance sheet give Micron durable financial flexibility to fund multi‑year fab builds, sustain dividends and opportunistic buybacks, and reduce debt. Strong OCF/FCF supports capex funding while preserving liquidity through cycles.
Read all positive factors
Micron (MU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$425.81B
Dividend Yield0.2%
Average Volume (3M)44.31M
Price to Earnings (P/E)8.5
Beta (1Y)2.45
Revenue Growth45.43%
EPS Growth203.31%
CountryUS
Employees48,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)12.20
Shares Outstanding1,127,734,000
10 Day Avg. Volume59,297,213
30 Day Avg. Volume44,310,244
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)2.51
Price to Sales (P/S)3.64
P/FCF Ratio81.63
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue7.86
Enterprise Value/Gross Profit13.45
Enterprise Value/Ebitda12.30
Forecast
1Y Price Target
$543.13Price Target Upside43.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering28
EPS Forecast (FY)56.81
Revenue Forecast (FY)$106.91B
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 Un...
How the Company Makes Money
Micron makes money primarily by selling memory and storage semiconductors and related solutions to electronics and system manufacturers. Its main revenue streams come from (1) DRAM products, which are sold into servers/data centers, PCs, graphics,...
Micron Key Performance Indicators (KPIs)
Micron Earnings Call Summary
Earnings Call Date:Mar 18, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 01, 2026
Earnings Call Sentiment Positive
The earnings call communicated exceptionally strong and broad-based operating and financial performance — record revenue, record margins, record free cash flow, aggressive upward guidance (Q3 revenue guide ~$33.5B and gross margin ~81%), technology wins (HBM4 shipments, 1γ and G9 ramps), and major balance sheet improvement (net cash, debt reduction, dividend increase). Offsetting risks are meaningful and structural: severe DRAM/NAND supply constraints, tight inventory, very large near-term CapEx (>$25B in FY26 and a further step-up in FY27), potential demand softness in price-sensitive consumer markets, and unspecified terms around long-term SCAs. On balance, the highlights substantially outweigh the lowlights given the magnitude of record results, strong guidance, and clear technology roadmap, while the company is proactively investing to address supply; therefore the overall tone is positive but with notable operational and capital execution risks that management is addressing.Positive Updates
Record Quarterly Revenue
Total fiscal Q2 revenue of $23.9B, up 75% sequentially and up 196% year-over-year; fourth consecutive quarterly revenue record and the largest single-quarter sequential increase in company history (+$10.2B).
Negative Updates
Severe DRAM and NAND Supply Constraints
Management repeatedly cited tight industry supply for both DRAM and NAND that will remain into and beyond 2026, constraining server and other end-market fulfillment and causing allocation (some customers are receiving only ~50–66% of demand).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Total fiscal Q2 revenue of $23.9B, up 75% sequentially and up 196% year-over-year; fourth consecutive quarterly revenue record and the largest single-quarter sequential increase in company history (+$10.2B).
Read all positive updates
Company Guidance
Micron guided fiscal Q3 to record revenue of $33.5B ± $0.75B, gross margin of ~81%, operating expenses of ~$1.4B, and non‑GAAP diluted EPS of $19.15 ± $0.40 (based on 1.15B shares) with an expected tax rate of ~15.1%; Q3 CapEx is ~ $7.0B, fiscal 2026 CapEx is now expected to be above $25.0B, and fiscal 2027 CapEx will “step up meaningfully” (construction‑related CapEx projected to increase by >$10.0B YoY with higher equipment spend). Management said fiscal Q4 OpEx will reflect an extra work week in this 53‑week year and that OpEx will increase in fiscal 2027 to fund R&D, expects materially higher free cash flow in Q3 while prioritizing balance‑sheet strength and disciplined capital allocation (30% dividend increase to $0.15/share; opportunistic buybacks subject to CHIPS restrictions), and excluded trade/geopolitical impacts from guidance; on industry trends, Micron expects calendar‑2026 DRAM bit shipments to grow in the low‑twenties percent range, NAND bit shipments ≈20%, server unit growth in the low‑teens, and Micron’s DRAM/NAND supply to grow roughly in line with the industry.Micron Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 58.12B | 37.38B | 25.11B | 15.54B | 30.76B | 27.70B |
| Gross Profit | 33.96B | 14.87B | 5.61B | -1.42B | 13.90B | 10.42B |
| EBITDA | 37.14B | 18.49B | 8.94B | 2.21B | 16.74B | 12.93B |
| Net Income | 24.11B | 8.54B | 778.00M | -5.83B | 8.69B | 5.86B |
Balance Sheet | ||||||
| Total Assets | 101.51B | 82.80B | 69.42B | 64.25B | 66.28B | 58.85B |
| Cash, Cash Equivalents and Short-Term Investments | 14.62B | 10.31B | 8.11B | 9.59B | 9.33B | 8.63B |
| Total Debt | 10.80B | 15.28B | 14.01B | 13.93B | 7.52B | 7.28B |
| Total Liabilities | 29.05B | 28.63B | 24.29B | 20.13B | 16.38B | 14.92B |
| Stockholders Equity | 72.46B | 54.16B | 45.13B | 44.12B | 49.91B | 43.93B |
Cash Flow | ||||||
| Free Cash Flow | 22.06B | 1.67B | 121.00M | -6.12B | 3.11B | 2.44B |
| Operating Cash Flow | 30.65B | 17.52B | 8.51B | 1.56B | 15.18B | 12.47B |
| Investing Cash Flow | -17.91B | -14.09B | -8.31B | -6.19B | -11.59B | -10.59B |
| Financing Cash Flow | -6.44B | -850.00M | -1.84B | 4.98B | -2.98B | -1.78B |
Micron Technical Analysis
Positive
377.58
Price Trends
402.52
Negative
340.05
Positive
245.48
Positive
Market Momentum
-11.23
Positive
47.36
Neutral
65.82
Neutral
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 377.58 is below the 20-day moving average (MA) of 396.35, below the 50-day MA of 402.52, and above the 200-day MA of 245.48, indicating a neutral trend. The MACD of -11.23 indicates Positive momentum. The RSI at 47.36 is Neutral, neither overbought nor oversold. The STOCH value of 65.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MU.
Micron Risk Analysis
Micron disclosed 33 risk factors in its most recent earnings report. Micron reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Micron Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $4.33T | 37.75 | 104.37% | 0.02% | 65.47% | 66.12% | |
79 Outperform | $105.77B | 8.79 | 64.18% | 0.18% | -16.35% | 316.56% | |
75 Outperform | $425.81B | 8.48 | 40.84% | 0.20% | 45.43% | 203.31% | |
72 Outperform | $281.18B | 31.26 | 38.90% | 0.69% | 4.47% | 0.48% | |
71 Outperform | $361.18B | 80.54 | 7.18% | ― | 34.34% | 163.27% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $264.29B | ― | -0.26% | ― | -0.47% | 98.20% |
* Technology Sector Average
MU
Micron
377.58
299.90
386.05%
AMD
Advanced Micro Devices
221.53
124.69
128.76%
AMAT
Applied Materials
354.31
205.72
138.45%
INTC
Intel
52.91
31.38
145.75%
NVDA
Nvidia
178.10
63.80
55.81%
WDC
Western Digital
311.96
275.82
763.13%
Micron Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Micron Completes Cash Tender Offers for Senior Notes
Positive
Apr 1, 2026
On March 31, 2026, Micron Technology announced the pricing of cash tender offers for any and all of six tranches of outstanding senior notes maturing between 2031 and 2035, with per-$1,000 consideration ranging from about $1,048 to nearly $1,080 b...
Business Operations and StrategyPrivate Placements and Financing
Micron Launches Cash Tender Offers for Senior Notes
Positive
Mar 25, 2026
On March 25, 2026, Micron Technology, Inc. launched cash tender offers to purchase any and all of six series of outstanding senior notes maturing between 2031 and 2035, with an aggregate principal outstanding in the billions of dollars. The offers...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Micron Shareholders Back Leadership, Governance Changes at Meeting
Positive
Jan 21, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.