Micron (MU) AI Stock Analysis

• Market Cap: $133.19B
• Dividend Yield: 0.39%
• Average Volume (3M): 18.62M
• Price to Earnings (P/E): 21.5
• Beta (1Y): 2.35
• Revenue Growth: 58.22%
• EPS Growth: N/A
• Country: US
• Employees: 48,000
• Sector: Technology
• Sector Strength: 87
• Industry: Semiconductors
• EPS (TTM): 1.91
• Shares Outstanding: 1,119,125,100
• 10 Day Avg. Volume: 15,038,620
• 30 Day Avg. Volume: 18,615,506
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 3.38
• Enterprise Value/Gross Profit: 9.10
• Enterprise Value/Ebitda: 7.24
• 1Y Price Target: $151.69
• Price Target Upside: 27.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 28

• Rating: 80 Outperform
• Price Target: $137.00 ▲(15.12% Upside)

Micron's overall stock score is driven by strong financial performance and a highly positive earnings call, highlighting record revenue and strategic investments. The technical analysis supports a bullish outlook, although caution is advised due to nearing overbought conditions. Valuation is fair, with room for improvement in dividend yield. The updated guidance further strengthens the positive sentiment, making Micron a compelling investment in the semiconductor industry.

Positive Factors

AI Demand

Increased AI demand is driving better pricing in DRAM and increasing high-margin HBM mix.

Consumer Demand

Micron anticipates positive consumer seasonality and product cycles for smartphones and PCs, which may drive demand in the second half of the year.

Earnings

Micron Technology has positively pre-announced its F4Q25 earnings, which was not widely anticipated, indicating better performance than expected.

Negative Factors

Competitive Pressure

If Samsung qualifies with Nvidia, Micron would see an immediate multiple compression on its stock and eventually see margin pressure.

Market Concerns

The biggest fear for investors is that Samsung will qualify at Nvidia for HBM, which could cause multiple compression for Micron stock and margin pressure.

Performance Durability

There are concerns about the durability of the current positive trend in Micron's performance.

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, which include DRAM, NAND flash memory, and specialty memory solutions. The company operates on a volume-based pricing model, where revenues are driven by the demand and pricing of its products in the market. Key revenue streams include sales to original equipment manufacturers (OEMs), data center operators, and consumer electronics companies. Additionally, Micron benefits from strategic partnerships with major technology firms and cloud service providers, which helps secure long-term contracts and expands its market reach. The company also invests in research and development to innovate and stay competitive in the fast-evolving semiconductor landscape, which further contributes to its earnings potential.

Micron Financial Statement Overview

Summary

Micron's financial performance is strong, with impressive revenue growth, improved margins, and robust cash flow generation. The income statement shows a significant increase in revenue and profitability, while the balance sheet remains stable with manageable debt levels. Cash flow performance is solid, supporting operational and financial strategies.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 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	15.78B	8.94B	2.21B	16.74B	12.93B	8.71B
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	16.14B	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	9.14B	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: 119.01
• 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 119.01 is above the 20-day moving average (MA) of 118.31, above the 50-day MA of 118.18, and above the 200-day MA of 100.00, indicating a bullish trend. The MACD of 1.00 indicates Positive momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 56.83 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
NVDA	86 Outperform	$4.23T	49.57	109.42%	0.02%	71.55%	64.54%
MU	80 Outperform	$133.19B	21.48	13.11%	0.39%	58.22%	―
AMD	77 Outperform	$263.92B	93.61	4.70%	―	27.17%	108.67%
WDC	74 Outperform	$27.87B	16.65	25.98%	0.12%	2.12%	―
AMAT	69 Neutral	$128.07B	19.17	35.64%	1.07%	6.70%	-5.95%
Sector *	61 Neutral	$35.45B	7.89	-10.11%	1.88%	8.47%	-9.45%
INTC	58 Neutral	$106.58B	―	-19.24%	0.51%	-3.72%	-2120.70%

Micron Corporate Events

Micron Raises Q4 2025 Revenue Guidance

On August 11, 2025, Micron Technology, Inc. announced an update to its fourth-quarter fiscal 2025 guidance, reflecting improved pricing and strong execution. The company raised its revenue guidance to $11.2 billion ± $100 million, non-GAAP gross margins to 44.5% ± 0.5%, and non-GAAP EPS to $2.85 ± $0.07, indicating positive market conditions, particularly in the DRAM sector.