Micron Technology
MU
$933.44
-2.64%
Micron Technology, Inc. is a global leader in the semiconductor industry, specializing in memory and storage solutions, primarily DRAM and NAND flash chips, which are essential components in data centers, mobile devices, and automotive applications. As one of the largest memory manufacturers worldwide, Micron holds a duopolistic position alongside Samsung and SK Hynix, with a vertically integrated business model that provides cost advantages and supply chain control. The current investor narrative centers on the explosive growth in AI-driven demand for high-bandwidth memory (HBM), which has propelled Micron's revenue and profitability to record levels, while also raising concerns about cyclicality and valuation sustainability. Recent news highlights unprecedented customer commitments, including $22 billion in take-or-pay contracts, and CEO statements indicating that data center demand exceeds supply by 50%, underscoring the AI tailwind but also the risks of overextension.…
MU
Micron Technology
$933.44
Related headlines
MU 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Micron Technology's 12-month outlook, with a consensus price target around $1513.41 and implied upside of +62.1% versus the current price.
Average Target
$1513.41
0 analysts
Implied Upside
+62.1%
vs. current price
Analyst Count
—
covering this stock
Price Range
$361 - $2200
Analyst target range
Micron is covered by 44 analysts, with a consensus recommendation of 'Strong Buy' (mean rating of 1.36 on a 1-5 scale, where 1 is Strong Buy). The average price target is $1,513.41, implying a substantial 62.2% upside from the current price of $932.86. The distribution is overwhelmingly bullish, with no sell ratings and only a few holds, reflecting strong conviction in the AI memory cycle. The target price range is wide, from a low of $361.00 to a high of $2,200.00, indicating significant uncertainty about the sustainability of current demand and pricing. The low target suggests a scenario where memory prices collapse and earnings normalize, while the high target assumes continued AI-driven shortages and multiple expansion. Recent institutional ratings have been uniformly positive, with firms like KeyBanc, Cantor Fitzgerald, and B of A Securities reiterating Overweight/Buy ratings, and no downgrades, signaling that analysts remain confident in Micron's growth trajectory despite the stock's recent volatility.
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MU Technical Analysis
Micron's stock has exhibited a spectacular uptrend over the past year, with a 1-year price change of +664.6%, far outpacing the S&P 500's +18.6%. The current price of $932.86 sits at 74.3% of its 52-week range (between $114.25 and $1255.00), indicating that while the stock has pulled back from its highs, it remains in a strong long-term bullish trend. This positioning suggests that the market is still rewarding the AI-driven growth narrative, though the recent correction from the peak may signal profit-taking or consolidation after a parabolic run.
Beta
2.21
2.21x market volatility
Max Drawdown
-39.1%
Largest decline past year
52-Week Range
$114-$1255
Price range past year
Annual Return
+684.3%
Cumulative gain past year
| Period | MU Return | S&P 500 |
|---|---|---|
| 1m | +13.4% | +2.0% |
| 3m | -13.5% | +1.0% |
| 6m | +135.1% | +11.8% |
| 1y | +684.3% | +18.1% |
| ytd | +195.9% | +11.7% |
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MU Fundamental Analysis
Micron's revenue trajectory has been nothing short of extraordinary, with the most recent quarter (Q3 FY2026) reporting revenue of $41.46 billion, a 345.7% year-over-year increase from $9.30 billion in the prior year's quarter. This growth is accelerating, as sequential revenue jumped from $23.86 billion in Q2 to $41.46 billion in Q3, driven by explosive demand for DRAM products, which contributed $18.77 billion in revenue, and NAND at $5.0 billion. The company's gross margin expanded to 84.6% in Q3, up from 37.7% a year ago, reflecting severe memory shortages and pricing power, while operating margin reached 80.4% and net margin hit 68.1%, resulting in net income of $28.24 billion. This profitability is exceptional, with EPS of $25.04 for the quarter, and the company has generated robust free cash flow of $17.56 billion in Q3, bringing TTM FCF to $26.17 billion. The balance sheet is solid, with a debt-to-equity ratio of 0.28 and a current ratio of 2.52, indicating ample liquidity and low financial risk, though the company continues to invest heavily in capex ($7.83 billion in Q3) to expand capacity for future AI demand.
Quarterly Revenue
$41.5B
2026-05
Revenue YoY Growth
+345.7%
YoY Comparison
Gross Margin
84.6%
Latest Quarter
Free Cash Flow
$26.2B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is MU Overvalued?
Given Micron's positive net income, the trailing P/E ratio of 15.95x is the primary valuation metric, while the forward P/E of 6.02x is significantly lower, implying that the market expects earnings to more than double in the next year, reflecting the consensus EPS estimate of $264.67. The PEG ratio of 0.016 is extremely low, suggesting that the stock is undervalued relative to its growth rate, though this is based on near-term explosive growth that may not be sustainable. Compared to the semiconductor industry average P/E of around 22x, Micron's trailing P/E of 15.95x represents a 27.5% discount, but its forward P/E of 6.02x is a 72.6% discount, indicating that the market is pricing in a sharp earnings surge. Historically, Micron's P/E has ranged from negative (during downturns) to over 100x, and the current trailing P/E is near the lower end of its historical band, suggesting that the stock is not expensive on a trailing basis, but the forward P/E implies that the market expects a massive earnings jump, which is already reflected in analyst estimates.
PE
15.9x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 8x~16x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
7.7x
Enterprise Value Multiple