Micron (MU) AI Stock Analysis

• Market Cap: $140.81B
• Dividend Yield: 0.36%
• Average Volume (3M): 19.81M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 2.35
• Revenue Growth: 58.22%
• EPS Growth: N/A
• Country: US
• Employees: 48,000
• Sector: Technology
• Sector Strength: 89
• Industry: Semiconductors
• EPS (TTM): 1.91
• Shares Outstanding: 1,117,571,500
• 10 Day Avg. Volume: 23,366,123
• 30 Day Avg. Volume: 19,805,819
• PEG Ratio: 1.47
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.56
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 13.38
• Enterprise Value/Ebitda: 3.49
• 1Y Price Target: $156.26
• Price Target Upside: 24.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 23

• Rating: 80 Outperform
• Price Target: $145.00 ▲(15.08%Upside)

Micron's overall stock score is driven by strong financial performance and positive earnings call sentiment. The company's robust revenue growth and strategic investments in technology and capacity expansion position it well for future growth. While technical indicators suggest bullish momentum, caution is warranted due to potential overbought conditions. Valuation remains fair, supporting the stock's growth narrative.

Positive Factors

AI Demand

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

Financial Performance

Micron's guidance for the upcoming quarter came in ahead of expectations on both the top and bottom line.

Market Share

Micron expects to reach its market share target for HBM ahead of its prior expectation due to strong execution and yield ramp.

Negative Factors

Consumer Mix

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

NAND Pricing

NAND pricing remains uncertain, posing a risk to future financial performance and visibility.

Startup Costs

Startup costs for the Idaho fab and newer DRAM node will continue to be modest headwinds.

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 with 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.

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
EBITDA	12.53B	9.58B	2.49B	16.88B	12.62B	8.83B
Net Income	4.67B	778.00M	-5.83B	8.69B	5.86B	2.69B
Balance Sheet
Total Assets	73.05B	69.42B	64.25B	66.28B	58.85B	53.68B
Cash, Cash Equivalents and Short-Term Investments	8.21B	8.11B	9.59B	9.33B	8.63B	8.14B
Total Debt	14.95B	14.01B	13.93B	7.52B	7.28B	7.18B
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: 126.00
• 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 126 is above the 20-day moving average (MA) of 113.58, above the 50-day MA of 96.09, and above the 200-day MA of 96.38, indicating a bullish trend. The MACD of 8.65 indicates Negative momentum. The RSI at 77.83 is Negative, neither overbought nor oversold. The STOCH value of 89.70 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	80 Outperform	$146.91B	21.93	36.37%	1.00%	6.12%	-5.66%
AMD	80 Outperform	$232.51B	105.32	3.90%	―	21.71%	99.00%
MU	80 Outperform	$140.81B	22.95	13.11%	0.36%	58.22%	―
KLAC	80 Outperform	$118.15B	32.47	104.10%	0.85%	20.44%	44.14%
LRCX	80 Outperform	$122.82B	26.75	53.14%	0.96%	20.33%	31.89%
Sector *	63 Neutral	$32.90B	6.03	-11.70%	1.95%	5.55%	-19.87%
INTC	47 Neutral	$96.84B	―	-18.66%	2.25%	-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.