Micron (MU) AI Stock Analysis

• Market Cap: $519.68B
• Dividend Yield: 0.2%
• Average Volume (3M): 33.72M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 2.50
• Revenue Growth: 45.43%
• EPS Growth: 203.31%
• Country: US
• Employees: 48,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 12.20
• Shares Outstanding: 1,125,509,300
• 10 Day Avg. Volume: 34,818,713
• 30 Day Avg. Volume: 33,722,884
• 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: 1.01
• Enterprise Value/Revenue: 9.00
• Enterprise Value/Gross Profit: 15.41
• Enterprise Value/Ebitda: 14.09
• 1Y Price Target: $536.41
• Price Target Upside: 16.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 27
• EPS Forecast (FY): 38.52
• Revenue Forecast (FY): $83.32B

• Rating: 83 Outperform
• Price Target: $538.00 ▲(16.52% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is driven primarily by strong financial performance (profitability and cash-flow rebound) and very bullish earnings-call guidance with record margins/revenue outlook. Technicals support the uptrend, though momentum appears somewhat stretched, while valuation is reasonable on P/E but offers minimal dividend support; the main risk remains cycle and execution risk from accelerating CapEx amid tight supply conditions.

Positive Factors

Technology & Process Leadership

Micron’s rapid ramp of HBM4, the fastest 1γ DRAM node adoption in company history, and G9 NAND scaling create sustainable product differentiation. These technology leadership positions support higher-value data center wins, improve mix and long-term gross margins as newer nodes gain share and yields normalize.

Strong Cash Generation & Improved Balance Sheet

Robust operating cash flow and materially positive free cash flow provide durable funding for multiyear fab builds, R&D, and shareholder returns while enabling deleveraging. A stronger balance sheet increases financial flexibility to absorb cyclical troughs and execute large-capex programs without immediate distress.

Data Center Share Gains & Diversified End Markets

Consistent market-share gains in data center SSDs and adoption of Gen6/G9 products indicate durable traction with hyperscalers and enterprise customers. This higher-value, less price-sensitive mix supports steadier revenue, stronger ASPs, and resilience versus consumer cyclical demand over the medium term.

Negative Factors

Severe Industry Supply Constraints

Extended supply tightness constrains Micron’s ability to meet demand and can force allocation decisions that strain customer relationships and long-term contracts. Until new fab capacity comes online, constrained supply limits sustainable revenue growth and leaves the firm exposed to competitor capacity moves.

Very High & Rising Capital Intensity

Multiyear, very large capex commitments increase execution and funding risk; timely ramp, cost control, and yield attainment are essential to justify the spend. Delays, cost overruns, or weaker pricing when capacity arrives would meaningfully impair returns and strain free cash flow generation.

Pronounced Earnings & Cash-Flow Cyclicality

Memory markets exhibit large amplitude cycles; historical swings in earnings and FCF complicate planning, capital allocation, and margins. This volatility raises the probability of earnings stress during downturns, making sustained margin and return targets harder to predict across multi-year capex cycles.

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 makes money primarily by selling memory and storage semiconductors and related solutions to electronics and system manufacturers. Its main revenue streams come from (1) DRAM products, which are sold into servers/data centers, PCs, graphics, networking equipment, and increasingly automotive and industrial applications; (2) NAND flash products, sold for use in storage devices such as SSDs and in embedded/mobile storage; and (3) SSD and managed NAND solutions, where Micron sells higher-level storage products that combine NAND components with controllers, firmware, and packaging to deliver complete storage modules or drives. Revenue is generated when customers purchase Micron-branded products or Micron-produced components that are integrated into customers’ end products; sales are typically influenced by industry supply-demand conditions and market pricing for DRAM and NAND, product mix (e.g., higher-value solutions versus commodity components), and Micron’s ability to deliver leading-edge process technology and yields. Micron also earns from long-term supply relationships and qualification-driven engagements with major OEMs and hyperscale/cloud customers, where meeting performance, reliability, and lifecycle requirements can support higher-volume or longer-duration purchasing. Additional factors affecting earnings include manufacturing scale and utilization of its fabrication facilities, cost reductions from process node transitions, and demand shifts across end markets (data center, PC, mobile, automotive, industrial), all of which can materially impact average selling prices, margins, and overall revenue.

Micron Financial Statement Overview

Summary

Strong TTM rebound with ~37% revenue growth, very high profitability (gross margin ~58%, net margin ~41%), improving leverage (debt-to-equity ~0.14), and robust cash generation (FCF ~$22.1B). Main risk is pronounced semiconductor cyclicality and historical volatility in earnings/FCF across the downcycle.

Income Statement

Micron’s income statement has strengthened sharply into TTM (Trailing-Twelve-Months): revenue rose to ~$58.1B (up ~37% year-over-year) and profitability expanded materially (gross margin ~58% and net margin ~41%). This is a major reversal from the 2023 downturn (negative margins and losses) and also well above the 2024 profitability trough. The main weakness is cyclicality—results have swung from deep losses (2023) to peak-like profits (TTM), which can be hard to sustain in semiconductors.

Balance Sheet

The balance sheet looks conservatively positioned with low leverage in TTM (Trailing-Twelve-Months): debt is ~$10.2B against equity of ~$72.5B (debt-to-equity ~0.14), improving versus 2023–2025 levels. Asset base is sizable (~$101.5B) and return on equity has rebounded strongly (TTM ~22%) after being depressed/negative during the downcycle. The key watch-out is that equity returns are highly cycle-dependent, and total debt remains meaningful in absolute dollars for a capital-intensive business.

Cash Flow

Cash generation is strong in TTM (Trailing-Twelve-Months): operating cash flow is ~$30.7B and free cash flow is ~$22.1B, with free cash flow growth up sharply (~85%). Cash flow also shows good support for profitability (operating cash flow is ~2.1x net income), though free cash flow runs below net income (~0.72x), suggesting working capital and/or investment needs still absorb some cash. The weakness is volatility—free cash flow was near breakeven in 2024 and deeply negative in 2023, highlighting downcycle risk.

Breakdown	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	58.12B	37.38B	25.11B	15.54B	30.76B	27.70B
Gross Profit	33.96B	14.87B	5.61B	-1.42B	13.90B	10.42B
EBITDA	37.14B	18.49B	8.94B	2.21B	16.74B	12.93B
Net Income	24.11B	8.54B	778.00M	-5.83B	8.69B	5.86B
Balance Sheet
Total Assets	101.51B	82.80B	69.42B	64.25B	66.28B	58.85B
Cash, Cash Equivalents and Short-Term Investments	14.59B	10.31B	8.11B	9.59B	9.33B	8.63B
Total Debt	10.21B	15.28B	14.01B	13.93B	7.52B	7.28B
Total Liabilities	29.05B	28.63B	24.29B	20.13B	16.38B	14.92B
Stockholders Equity	72.46B	54.16B	45.13B	44.12B	49.91B	43.93B
Cash Flow
Free Cash Flow	22.06B	1.67B	121.00M	-6.12B	3.11B	2.44B
Operating Cash Flow	30.65B	17.52B	8.51B	1.56B	15.18B	12.47B
Investing Cash Flow	-17.91B	-14.09B	-8.31B	-6.19B	-11.59B	-10.59B
Financing Cash Flow	-6.44B	-850.00M	-1.84B	4.98B	-2.98B	-1.78B

Micron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 461.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 461.73 is above the 20-day moving average (MA) of 415.49, above the 50-day MA of 396.92, and above the 200-day MA of 228.28, indicating a bullish trend. The MACD of 14.01 indicates Negative momentum. The RSI at 64.25 is Neutral, neither overbought nor oversold. The STOCH value of 92.37 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
MU	83 Outperform	$519.68B	12.36	22.43%	0.20%	45.43%	203.31%
NVDA	83 Outperform	$4.38T	37.75	104.37%	0.02%	―	―
WDC	79 Outperform	$103.37B	8.79	64.18%	0.18%	-16.35%	316.56%
AMAT	72 Outperform	$277.34B	31.26	38.90%	0.69%	4.47%	0.48%
AMD	71 Outperform	$325.20B	80.54	7.18%	―	31.83%	80.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INTC	48 Neutral	$224.92B	-658.38	-0.26%	―	-1.49%	―

Micron Corporate Events

Micron Shareholders Back Leadership, Governance Changes at Meeting

At Micron Technology’s fiscal 2025 annual meeting of stockholders held on January 15, 2026, shareholders re-elected eight directors to the board, including CEO Sanjay Mehrotra, with strong majorities for most nominees, reinforcing continuity in the company’s leadership. Investors also approved on an advisory basis the compensation of Micron’s named executive officers, backed an amendment to the company’s Restated Certificate of Incorporation to add Delaware-law officer exculpation protections, and ratified PricewaterhouseCoopers LLP as independent auditor for the fiscal year ending September 3, 2026, while a shareholder proposal to expand special meeting rights failed to secure enough support, signaling stockholder alignment with existing governance structures and management’s strategic direction.

The most recent analyst rating on (MU) stock is a Buy with a $360.00 price target. To see the full list of analyst forecasts on Micron stock, see the MU Stock Forecast page.