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Micron
(NASDAQ:MU)
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Rating:84Outperform
Price Target:
$1,141.00
▲(150.73% Upside)
Action:Reiterated
Date:06/25/26
The score is driven primarily by very strong financial performance (surging profitability, strong free cash flow, and improved leverage) and an upbeat earnings outlook with aggressive guidance and strategic customer agreements that increase visibility. Technicals also support the rating with a strong uptrend and healthy momentum. Offsetting factors are valuation that already reflects strong expectations and cycle/execution risks from high and rising CapEx/OpEx and memory-market cyclicality.
Positive Factors
Cash generation & profitability
Micron's very large trailing‑12‑month operating and free cash flows provide durable internal funding for fabs, R&D and customer commitments. Strong cash conversion and low leverage expand strategic optionality, support capex funding and capital returns, and bolster resilience across memory cycles.
Negative Factors
High and rising capital & operating intensity
Micron's very large and growing capex program materially raises capital intensity and execution risk. Sustained high investment extends payback periods, makes returns sensitive to cycle normalization, and increases the consequences of any demand shortfall or ramp delays for margins and long‑term ROIC.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & profitability
Micron's very large trailing‑12‑month operating and free cash flows provide durable internal funding for fabs, R&D and customer commitments. Strong cash conversion and low leverage expand strategic optionality, support capex funding and capital returns, and bolster resilience across memory cycles.
Read all positive factors
Micron Key Performance Indicators (KPIs)
Any
Revenue by Technology
Shows how much revenue comes from different memory technologies (DRAM, NAND, and other products), revealing which products are driving growth and how exposed Micron is to memory price swings. Tracking technology mix highlights where margins and demand are strongest and where future investment or competitive pressure might matter most.
Shows how much revenue comes from different memory technologies (DRAM, NAND, and other products), revealing which products are driving growth and how exposed Micron is to memory price swings. Tracking technology mix highlights where margins and demand are strongest and where future investment or competitive pressure might matter most.
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The Fly
The FlyMicron (MU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.28T
Dividend Yield0.2%
Average Volume (3M)55.25M
Price to Earnings (P/E)52.9
Beta (1Y)2.68
Revenue Growth166.98%
EPS Growth701.44%
CountryUS
Employees48,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)44.81
Shares Outstanding1,127,734,000
10 Day Avg. Volume55,951,682
30 Day Avg. Volume55,246,345
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 Cap0.92
Enterprise Value/Revenue13.01
Enterprise Value/Gross Profit17.93
Enterprise Value/Ebitda26.13
Forecast
1Y Price Target
$1,563.93Price Target Upside243.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering30
EPS Forecast (FY)72.73
Revenue Forecast (FY)$127.53B
Micron Business Overview & Revenue Model
Company Description
Micron Technology, Inc. is a global leader specializing in the development, manufacture, and sale of advanced semiconductor memory and storage solutions. Its operations are structured across four primary business segments: Compute and Networking, ...
How the Company Makes Money
Micron primarily makes money by selling memory and storage products, with revenue recognized from shipments to customers (typically OEMs, hyperscale/data-center operators, device makers, and channel partners). The company’s key revenue streams are...
Micron Earnings Call Summary
Earnings Call Date:Jun 24, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 29, 2026
Earnings Call Sentiment Positive
The call communicated exceptionally strong near-term financial performance (record revenue, gross margin, EPS, cash flow) and meaningful strategic progress (16 SCAs, technology ramps, HBM momentum, strong balance sheet). These positives were balanced against material industry-wide and structural challenges: persistent supply constraints expected beyond 2027, rising cost-per-bit and manufacturing complexity, heavy near-term capital spending, and some uncertainty around SCA pricing structure and the ultimate revenue mix. On balance, the company’s execution, cash generation, strategic contracts, and technology leadership substantially outweigh the risks highlighted, while the risks underscore multi-year capacity and cost challenges that management is explicitly addressing.Positive Updates
Record Revenue, Gross Margin and EPS
Fiscal Q3 revenue $41.5B (+74% sequential, +346% YoY); consolidated gross margin 84.9% (up 10 percentage points sequentially); non-GAAP diluted EPS $25.11 (+106% sequential). Fifth consecutive quarterly revenue record and largest sequential revenue increase in company history ($17.6B).
Negative Updates
Persistent Supply Constraints and No Line of Sight
Management expects DRAM and NAND tightness to persist beyond calendar 2027 with no clear line of sight to when supply will catch up. Constraints cited include long lead times for greenfield fabs, shortage of skilled workers, regulatory/permitting complexity, and energy infrastructure limits.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Revenue, Gross Margin and EPS
Fiscal Q3 revenue $41.5B (+74% sequential, +346% YoY); consolidated gross margin 84.9% (up 10 percentage points sequentially); non-GAAP diluted EPS $25.11 (+106% sequential). Fifth consecutive quarterly revenue record and largest sequential revenue increase in company history ($17.6B).
Read all positive updates
Company Guidance
Micron guided fiscal Q4 revenue of $50 billion ± $1 billion, gross margin of ~86%, operating expenses of ≈$1.65 billion, a diluted share count of ~1.15 billion and non‑GAAP EPS of $31 ± $1, with an expected tax rate around 15%. They expect Q4 CapEx of about $10 billion (bringing fiscal 2026 CapEx to ≈$27 billion), said quarterly CapEx in fiscal 2027 will be above Q4 levels, and flagged a ~$1 billion increase in operating expenses for fiscal 2027 (weighted to the second half); free cash flow is expected to increase substantially in Q4 after a record Q3 free cash flow of $18.3 billion and operating cash flow of $25.4 billion. On strategic customer agreements they reported RPO > $5 billion at quarter end and aggregate RPO on executed SCAs of ≈ $100 billion, expect to receive ~$22 billion of customer deposits (≈$18 billion cash) to appear on the balance sheet in Q4, noted the SCAs cover roughly 20% of DRAM volume and ~33% of NAND volume (rising to about half or more of company revenue when all are executed), and said they will increase capital returns after 12/09/2026 with a long‑term intent to return 100% of excess cash.Micron Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 90.27B | 37.38B | 25.11B | 15.54B | 30.76B | 27.70B |
| Gross Profit | 65.51B | 14.87B | 5.61B | -1.42B | 13.90B | 10.42B |
| EBITDA | 44.96B | 18.49B | 8.94B | 2.21B | 16.74B | 12.93B |
| Net Income | 50.47B | 8.54B | 778.00M | -5.83B | 8.69B | 5.86B |
Balance Sheet | ||||||
| Total Assets | 134.11B | 82.80B | 69.42B | 64.25B | 66.28B | 58.85B |
| Cash, Cash Equivalents and Short-Term Investments | 26.02B | 10.31B | 8.11B | 9.59B | 9.33B | 8.63B |
| Total Debt | 6.38B | 15.28B | 14.01B | 13.93B | 7.52B | 7.28B |
| Total Liabilities | 33.39B | 28.63B | 24.29B | 20.13B | 16.38B | 14.92B |
| Stockholders Equity | 100.72B | 54.16B | 45.13B | 44.12B | 49.91B | 43.93B |
Cash Flow | ||||||
| Free Cash Flow | 26.17B | 1.67B | 121.00M | -6.12B | 3.11B | 2.44B |
| Operating Cash Flow | 51.43B | 17.52B | 8.51B | 1.56B | 15.18B | 12.47B |
| Investing Cash Flow | -24.89B | -14.09B | -8.31B | -6.19B | -11.59B | -10.59B |
| Financing Cash Flow | -11.71B | -850.00M | -1.84B | 4.98B | -2.98B | -1.78B |
Micron Technical Analysis
Neutral
455.07
Price Trends
852.09
Positive
630.40
Positive
444.22
Positive
Market Momentum
64.48
Positive
48.47
Neutral
28.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MU, the sentiment is Neutral. The current price of 455.07 is below the 20-day moving average (MA) of 1043.27, below the 50-day MA of 852.09, and above the 200-day MA of 444.22, indicating a neutral trend. The MACD of 64.48 indicates Positive momentum. The RSI at 48.47 is Neutral, neither overbought nor oversold. The STOCH value of 28.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.28T | 52.90 | 40.84% | 0.20% | 166.98% | 701.44% | |
80 Outperform | $489.96B | 57.59 | 39.78% | 0.69% | 3.35% | 29.52% | |
79 Outperform | $4.71T | 29.70 | 111.66% | 0.02% | 70.68% | 109.57% | |
78 Outperform | $876.24B | 174.98 | 8.08% | ― | 34.97% | 123.87% | |
78 Outperform | $257.21B | 39.69 | 91.94% | 0.18% | -18.43% | 242.76% | |
63 Neutral | $673.43B | ― | -2.95% | ― | 1.36% | 86.07% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
MU
Micron
975.56
855.81
714.69%
AMD
Advanced Micro Devices
517.82
383.02
284.14%
AMAT
Applied Materials
603.04
413.65
218.41%
INTC
Intel
120.35
98.35
447.05%
NVDA
Nvidia
194.83
36.80
23.29%
WDC
Western Digital
539.00
473.96
728.75%
Micron Corporate Events
Executive/Board Changes
Micron Appoints Alexis Black Björlin to Board
Positive
Jun 9, 2026
On June 9, 2026, Micron Technology, Inc. appointed Alexis Black Björlin to its board of directors, expanding the board to nine members, eight of whom are deemed independent under Nasdaq rules. Björlin, who will also serve on the Governan...
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.