Micron (MU) AI Stock Analysis

• Market Cap: $128.02B
• Dividend Yield: 0.51%
• Average Volume (3M): 23.62M
• Price to Earnings (P/E): 20.6
• Beta (1Y): 2.31
• Revenue Growth: 58.22%
• EPS Growth: N/A
• Country: US
• Employees: 48,000
• Sector: Technology
• Sector Strength: 93
• Industry: Semiconductors
• EPS (TTM): 1.91
• Shares Outstanding: 1,119,125,100
• 10 Day Avg. Volume: 23,879,317
• 30 Day Avg. Volume: 23,623,292
• PEG Ratio: 0.65
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.09
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 11.12
• Enterprise Value/Ebitda: 2.61
• 1Y Price Target: $155.17
• Price Target Upside: 42.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 25

• Rating: 78 Outperform
• Price Target: $142.00 ▲(30.01%Upside)

Micron's strong financial performance and positive earnings call sentiment are the primary drivers of its high stock score. Technical indicators are supportive but suggest caution due to potential overbought conditions. Valuation remains attractive, providing a balanced investment outlook.

Positive Factors

AI Demand

AI demand remains incredibly robust, supporting volumes, mix, and ultimately gross margins for Micron.

DRAM Pricing

TrendForce raised their third-quarter forecast for DRAM prices to increase 15-20% quarter-over-quarter, driven by tight supply and stronger AI demand, which is favorable for Micron.

Negative Factors

Blended ASP Decline

Blended DRAM and NAND average selling prices experienced a decline during the period.

Consumer Mix

A higher mix of consumer products led to a low single-digit sequential decline in DRAM average selling prices.

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 demonstrates strong financial performance with impressive revenue and profit growth, a stable balance sheet, and robust cash flow generation. Despite an increase in debt levels, they remain manageable, supporting growth initiatives.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	25.11B	15.54B	30.76B	27.70B	21.43B
Gross Profit	5.61B	-1.42B	13.90B	10.42B	6.55B
EBITDA	9.58B	2.49B	16.88B	12.62B	8.83B
Net Income	778.00M	-5.83B	8.69B	5.86B	2.69B
Balance Sheet
Total Assets	69.42B	64.25B	66.28B	58.85B	53.68B
Cash, Cash Equivalents and Short-Term Investments	8.11B	9.59B	9.33B	8.63B	8.14B
Total Debt	14.01B	13.93B	7.52B	7.28B	7.18B
Total Liabilities	24.29B	20.13B	16.38B	14.92B	14.68B
Stockholders Equity	45.13B	44.12B	49.91B	43.93B	39.00B
Cash Flow
Free Cash Flow	121.00M	-6.12B	3.11B	2.44B	83.00M
Operating Cash Flow	8.51B	1.56B	15.18B	12.47B	8.31B
Investing Cash Flow	-8.31B	-6.19B	-11.59B	-10.59B	-7.59B
Financing Cash Flow	-1.84B	4.98B	-2.98B	-1.78B	-317.00M

Micron Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 109.22
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 109.22 is below the 20-day moving average (MA) of 120.63, below the 50-day MA of 110.74, and above the 200-day MA of 98.53, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 38.45 is Neutral, neither overbought nor oversold. The STOCH value of 14.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MU.

Micron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KLAC	82 Outperform	$123.13B	33.84	104.10%	0.76%	20.44%	44.14%
AMAT	80 Outperform	$152.83B	23.18	36.37%	1.10%	6.12%	-5.66%
AMD	80 Outperform	$254.54B	115.09	3.90%	―	21.71%	99.00%
MU	78 Outperform	$128.02B	20.65	13.11%	0.51%	58.22%	―
LRCX	78 Outperform	$128.76B	28.04	53.14%	0.90%	20.33%	31.89%
Sector *	63 Neutral	$34.61B	5.36	-11.67%	1.95%	5.33%	-20.62%
INTC	56 Neutral	$100.76B	―	-18.66%	2.15%	-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.