Micron (MU) AI Stock Analysis

• Market Cap: $133.93B
• Dividend Yield: 0.38%
• Average Volume (3M): 18.42M
• Price to Earnings (P/E): 28.8
• Beta (1Y): 2.34
• Revenue Growth: 71.05%
• EPS Growth: N/A
• Country: US
• Employees: 48,000
• Sector: Technology
• Sector Strength: 82
• Industry: Semiconductors
• EPS (TTM): 1.56
• Shares Outstanding: 1,117,571,500
• 10 Day Avg. Volume: 20,755,381
• 30 Day Avg. Volume: 18,416,561
• PEG Ratio: 0.08
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.50
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 5.79
• Enterprise Value/Ebitda: 1.51
• 1Y Price Target: $124.17
• Price Target Upside: 1.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 79 Outperform
• Price Target: $106.00 ▼(-12.99%Downside)

Micron's strong financial performance and positive earnings call guidance are key drivers of its high stock score. Technical analysis indicates a positive trend, although the potential overbought condition warrants caution. Valuation metrics suggest high growth expectations, but the modest dividend yield reflects reinvestment priorities.

Positive Factors

Financial Performance

If suppliers reach their pricing goals within DRAM and NAND, MU's earnings power could increase significantly.

Market Share

Micron Technology is gaining market share in the HBM sector, with its revenue projected to grow significantly, enhancing its overall financial performance.

Technology Advancements

Micron's advanced memory technology positions it as an industry leader, crucially addressing rising AI infrastructure demands.

Negative Factors

Demand Outlook

The end-demand outlook remains weak particularly in Mobile/PC, making it difficult to pass through higher prices.

Market Competition

Samsung targets mass production of HBM4 and revenue contributions, highlighting competitive pressure in the market.

Pricing Sustainability

Investors may start to question the sustainability of the trend of higher DRAM/NAND pricing amid end-demand weakness.

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 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's financial performance shows notable improvements across key metrics. The company has achieved impressive revenue growth and profitability recovery, supported by strong margins and cash flow generation. The balance sheet remains robust with conservative leverage and high equity levels, positioning the company well for future growth in the semiconductor industry.

Income Statement

Micron's TTM revenue grew by 24.72% compared to the previous year, indicating strong top-line growth. The gross profit margin improved significantly to 34.73% in TTM, from a negative margin in 2023, reflecting enhanced operational efficiency. Net profit margin increased to 14.92% in TTM, moving from a loss in prior years, highlighting a strong recovery in profitability. Both EBIT and EBITDA margins improved, suggesting better cost management and higher earnings quality.

Balance Sheet

Micron maintains a solid balance sheet with a debt-to-equity ratio of 0.30, indicating a conservative leverage position. The equity ratio stands at 66.57%, showcasing strong equity backing relative to total assets. Return on equity improved remarkably to 9.61% in TTM, up from negative returns, signaling improved profitability and effective use of equity capital.

Cash Flow

Free cash flow grew significantly, with a positive shift in TTM. The operating cash flow to net income ratio is 2.80, demonstrating robust cash generation relative to earnings. The free cash flow to net income ratio of 1.68 further supports the company's strong cash flow performance, indicating efficient capital expenditure and healthy cash reserves.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
31.32B	25.11B	15.54B	30.76B	27.70B	21.43B
	Gross Profit
10.88B	5.61B	-1.42B	13.90B	10.42B	6.55B
	EBIT
6.16B	1.30B	-5.75B	9.70B	6.28B	3.00B
	EBITDA
12.53B	9.58B	2.49B	16.88B	12.62B	8.83B
	Net Income Common Stockholders
4.67B	778.00M	-5.83B	8.69B	5.86B	2.69B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.21B	8.11B	9.59B	9.33B	8.63B	8.14B
	Total Assets
73.05B	69.42B	64.25B	66.28B	58.85B	53.68B
	Total Debt
14.95B	14.01B	13.93B	7.52B	7.28B	7.18B
	Net Debt
7.40B	6.97B	5.36B	-746.00M	-483.00M	-448.00M
	Total Liabilities
24.42B	24.29B	20.13B	16.38B	14.92B	14.68B
	Stockholders Equity
48.63B	45.13B	44.12B	49.91B	43.93B	39.00B
Cash Flow		Free Cash Flow
7.87B	121.00M	-6.12B	3.11B	2.44B	83.00M
	Operating Cash Flow
13.07B	8.51B	1.56B	15.18B	12.47B	8.31B
	Investing Cash Flow
-11.90B	-8.31B	-6.19B	-11.59B	-10.59B	-7.59B
	Financing Cash Flow
-1.71B	-1.84B	4.98B	-2.98B	-1.78B	-317.00M

Micron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 121.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 121.82 is above the 20-day moving average (MA) of 106.06, above the 50-day MA of 90.64, and above the 200-day MA of 95.49, indicating a bullish trend. The MACD of 8.15 indicates Negative momentum. The RSI at 82.97 is Negative, neither overbought nor oversold. The STOCH value of 88.54 is Negative, 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	81 Outperform	$139.71B	21.19	36.37%	1.06%	6.12%	-5.66%
AMD	81 Outperform	$204.93B	93.17	3.90%	―	21.71%	99.00%
KLAC	80 Outperform	$118.09B	32.45	104.10%	0.87%	20.44%	44.14%
LRCX	80 Outperform	$118.52B	25.81	53.14%	1.00%	20.33%	31.89%
MU	79 Outperform	$133.93B	28.80	10.10%	0.38%	71.05%	―
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%
INTC	47 Neutral	$90.47B	―	-18.66%	2.33%	-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.