Micron (MU) AI Stock Analysis

• Market Cap: $139.62B
• Dividend Yield: 0.37%
• Average Volume (3M): 21.36M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 2.30
• Revenue Growth: 58.22%
• EPS Growth: N/A
• Country: US
• Employees: 48,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.91
• Shares Outstanding: 1,119,125,100
• 10 Day Avg. Volume: 29,390,817
• 30 Day Avg. Volume: 21,362,384
• PEG Ratio: 0.68
• Price to Book (P/B): 2.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.54
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 11.54
• Enterprise Value/Ebitda: 3.08
• 1Y Price Target: $156.26
• Price Target Upside: 26.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 23

• Rating: 78 Outperform
• Price Target: $142.00 ▲(15.21%Upside)

Micron's strong financial performance and positive earnings call sentiment are the primary drivers of its high stock score. Technical indicators are supportive but suggest caution due to potential overbought conditions. Valuation remains attractive, providing a balanced investment outlook.

Positive Factors

AI Demand

AI demand remains incredibly robust, supporting volumes, mix, and ultimately gross margins.

Financial Performance

Micron reported stronger-than-expected revenue and EPS, benefiting from a rebound in DRAM consumer demand while DRAM DC demand remained strong.

Market Outlook

Micron's guidance for the upcoming quarter came in ahead of expectations on both the top and bottom line.

Negative Factors

Consumer Mix

A higher mix of consumer products led to a low single-digit sequential decline in DRAM average selling prices.

Selling Prices

Blended DRAM and NAND average selling prices experienced a decline during the period.

Micron Business Overview & Revenue Model

Company Description

Micron Technology, Inc. is a leading global provider of innovative memory and storage solutions. The company operates primarily in the semiconductor sector, focusing on the design, development, and manufacturing of dynamic random-access memory (DRAM), NAND flash memory, and NOR flash memory. Micron's products are used in a wide range of applications, including personal computing, data centers, mobile devices, automotive, industrial, and networking markets.

How the Company Makes Money

Micron Technology generates revenue primarily through the sale of its semiconductor memory and storage products. The company's key revenue streams include the sale of DRAM and NAND flash memory products to original equipment manufacturers (OEMs) and other customers across various industries like technology, automotive, and telecommunications. DRAM products are used extensively in computing devices and servers, while NAND products are critical for storage solutions in mobile devices and data centers. In addition to direct sales, Micron also engages in partnerships and collaborations with other tech companies to enhance its product offerings and reach. Market demand for memory and storage, technological advancements, and the company's ability to scale production efficiently are significant factors contributing to its earnings.

Micron Financial Statement Overview

Summary

Micron demonstrates strong financial performance with impressive revenue and profit growth, a stable balance sheet, and robust cash flow generation. Despite an increase in debt levels, they remain manageable, supporting growth initiatives.

Income Statement

Micron's income statement shows a strong recovery with a significant increase in total revenue from $25.11 billion to $33.81 billion TTM, resulting in a robust revenue growth rate of 34.7%. Gross profit margin improved to 37.1% TTM, indicating better cost management. The net profit margin of 18.4% TTM reflects substantial profitability. EBIT and EBITDA margins of 22.6% and 35.1% TTM respectively, demonstrate solid operational efficiency. These factors contribute to a strong income statement performance.

Balance Sheet

Micron's balance sheet is stable with a debt-to-equity ratio of 0.31 TTM, indicating controlled leverage. The return on equity of 12.3% TTM shows effective use of shareholder funds, though there is room for improvement. The equity ratio of 64.7% TTM underscores a strong capital structure. While the financial health is sound, the company should continue to monitor its debt levels as total debt has increased.

Cash Flow

The cash flow statement highlights a healthy free cash flow growth rate from $0.121 billion to $12.08 billion TTM, showing significant cash generation capabilities. The operating cash flow to net income ratio of 2.44 TTM indicates strong cash conversion. The free cash flow to net income ratio of 1.94 TTM suggests efficient capital expenditure management. Overall, Micron's cash flow performance is robust, supporting its operational and financial strategies.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	33.81B	25.11B	15.54B	30.76B	27.70B	21.43B
Gross Profit	12.56B	5.61B	-1.42B	13.90B	10.42B	6.55B
EBITDA	11.87B	9.58B	2.49B	16.88B	12.62B	8.83B
Net Income	6.22B	778.00M	-5.83B	8.69B	5.86B	2.69B
Balance Sheet
Total Assets	78.40B	69.42B	64.25B	66.28B	58.85B	53.68B
Cash, Cash Equivalents and Short-Term Investments	10.81B	8.11B	9.59B	9.33B	8.63B	8.14B
Total Debt	15.60B	14.01B	13.93B	7.52B	7.28B	7.18B
Total Liabilities	27.65B	24.29B	20.13B	16.38B	14.92B	14.68B
Stockholders Equity	50.75B	45.13B	44.12B	49.91B	43.93B	39.00B
Cash Flow
Free Cash Flow	12.08B	121.00M	-6.12B	3.11B	2.44B	83.00M
Operating Cash Flow	15.20B	8.51B	1.56B	15.18B	12.47B	8.31B
Investing Cash Flow	-12.49B	-8.31B	-6.19B	-11.59B	-10.59B	-7.59B
Financing Cash Flow	-260.00M	-1.84B	4.98B	-2.98B	-1.78B	-317.00M

Micron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 123.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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 123.25 is above the 20-day moving average (MA) of 116.41, above the 50-day MA of 98.24, and above the 200-day MA of 96.76, indicating a bullish trend. The MACD of 7.92 indicates Positive momentum. The RSI at 70.27 is Negative, neither overbought nor oversold. The STOCH value of 57.58 is Neutral, 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
AMAT	80 Outperform	$147.03B	22.30	36.37%	1.00%	6.12%	-5.66%
AMD	80 Outperform	$233.17B	104.02	3.90%	―	21.71%	99.00%
KLAC	80 Outperform	$117.68B	32.34	104.10%	0.85%	20.44%	44.14%
LRCX	80 Outperform	$124.33B	27.08	53.14%	0.95%	20.33%	31.89%
MU	78 Outperform	$139.62B	22.52	13.11%	0.37%	58.22%	―
Sector *	63 Neutral	$33.26B	5.86	-11.55%	1.91%	5.52%	-20.13%
INTC	47 Neutral	$98.97B	―	-18.66%	2.20%	-3.97%	-562.40%

Micron Corporate Events

Micron Expands Credit Facility with HSBC Bank

On March 12, 2025, Micron Technology, Inc. entered into a new revolving credit agreement with HSBC Bank USA, replacing its existing $2.5 billion facility with a $3.5 billion revolving credit facility. This strategic financial move, which includes provisions for potential expansion and improved terms, is aimed at supporting the company’s general corporate purposes and enhancing its financial flexibility. The agreement underscores Micron’s commitment to maintaining a robust financial structure, with no outstanding borrowings reported under the new facility as of the filing date.