Micron (MU) AI Stock Analysis

• Market Cap: $266.96B
• Dividend Yield: 0.19%
• Average Volume (3M): 24.34M
• Price to Earnings (P/E): 31.3
• Beta (1Y): 2.61
• Revenue Growth: 48.85%
• EPS Growth: 997.29%
• Country: US
• Employees: 48,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 3.03
• Shares Outstanding: 1,125,349,700
• 10 Day Avg. Volume: 18,149,434
• 30 Day Avg. Volume: 24,336,904
• 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: 0.54
• Enterprise Value/Revenue: 3.83
• Enterprise Value/Gross Profit: 9.62
• Enterprise Value/Ebitda: 7.82
• 1Y Price Target: $235.82
• Price Target Upside: -0.59% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 29
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $261.00 ▲(10.02% Upside)

Micron's strong earnings call performance and solid financials are the primary drivers of its stock score. While technical indicators show a positive trend, the high P/E ratio and low dividend yield suggest valuation concerns. The company's strategic investments in AI and data centers bolster its competitive position, but challenges in cash flow growth and increased operating expenses warrant cautious optimism.

Positive Factors

Revenue Growth

Micron's significant revenue growth indicates strong demand for its products and effective market positioning, supporting long-term business expansion.

Data Center Market Position

Dominant position in the data center market enhances Micron's revenue stability and growth potential, leveraging the ongoing digital transformation.

Advanced Technology Leadership

Leadership in advanced memory technologies strengthens Micron's competitive edge, fostering innovation and long-term market leadership.

Negative Factors

NAND Revenue Challenges

Declining NAND revenue highlights potential market saturation or competitive pressures, which could impact future profitability and market share.

Increased Operating Expenses

Rising operating expenses, particularly in R&D, may pressure margins and require careful management to sustain profitability.

Free Cash Flow Challenges

Negative free cash flow growth suggests potential liquidity issues, impacting Micron's ability to fund operations and investments sustainably.

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

Micron demonstrates strong profitability and growth in the TTM period, with a solid balance sheet and efficient equity utilization. However, challenges in maintaining consistent free cash flow growth and past volatility warrant cautious optimism.

Income Statement

Micron's income statement shows strong performance with a TTM gross profit margin of 39.79% and a net profit margin of 22.84%, indicating robust profitability. The revenue growth rate of 10.54% in the TTM period highlights a positive growth trajectory. The EBIT and EBITDA margins are also healthy at 16.54% and 42.82%, respectively. However, the company experienced volatility in previous years, with a significant dip in 2023, which could pose a risk if such fluctuations recur.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.27 in the TTM period, showing moderate leverage. The return on equity (ROE) is strong at 17.05%, indicating efficient use of equity. The equity ratio stands at 65.41%, suggesting a solid capital structure. However, the increase in total debt over the years should be monitored to ensure it does not impact financial flexibility.

Cash Flow

Micron's cash flow statement reveals a mixed picture. The operating cash flow to net income ratio is 1.33, indicating good cash generation relative to net income. However, the free cash flow growth rate is negative at -2.33% in the TTM period, reflecting challenges in maintaining free cash flow. The free cash flow to net income ratio of 0.60 suggests a reasonable conversion of net income to free cash flow, but the negative growth trend is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.38B	37.38B	25.11B	15.54B	30.76B	27.70B
Gross Profit	14.87B	14.87B	5.61B	-1.42B	13.90B	10.42B
EBITDA	18.30B	18.49B	8.94B	2.21B	16.74B	12.93B
Net Income	8.54B	8.54B	778.00M	-5.83B	8.69B	5.86B
Balance Sheet
Total Assets	82.80B	82.80B	69.42B	64.25B	66.28B	58.85B
Cash, Cash Equivalents and Short-Term Investments	10.31B	10.31B	8.11B	9.59B	9.33B	8.63B
Total Debt	15.28B	15.28B	14.01B	13.93B	7.52B	7.28B
Total Liabilities	28.63B	28.63B	24.29B	20.13B	16.38B	14.92B
Stockholders Equity	54.16B	54.16B	45.13B	44.12B	49.91B	43.93B
Cash Flow
Free Cash Flow	8.93B	1.67B	121.00M	-6.12B	3.11B	2.44B
Operating Cash Flow	17.52B	17.52B	8.51B	1.56B	15.18B	12.47B
Investing Cash Flow	-14.09B	-14.09B	-8.31B	-6.19B	-11.59B	-10.59B
Financing Cash Flow	-850.00M	-850.00M	-1.84B	4.98B	-2.98B	-1.78B

Micron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 237.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 237.22 is above the 20-day moving average (MA) of 232.96, above the 50-day MA of 214.06, and above the 200-day MA of 133.62, indicating a bullish trend. The MACD of 5.17 indicates Positive momentum. The RSI at 55.85 is Neutral, neither overbought nor oversold. The STOCH value of 74.58 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	78 Outperform	$213.50B	30.95	35.51%	0.66%	4.47%	0.48%
WDC	78 Outperform	$57.74B	24.62	31.48%	0.19%	-16.35%	316.56%
MU	77 Outperform	$266.96B	31.25	17.20%	0.19%	48.85%	997.29%
NVDA	76 Outperform	$4.43T	45.18	107.36%	0.02%	65.22%	58.53%
AMD	75 Outperform	$354.86B	107.72	5.32%	―	31.83%	80.45%
INTC	66 Neutral	$197.53B	3,906.60	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.