Micron (MU) AI Stock Analysis

• Market Cap: $176.00B
• Dividend Yield: 0.29%
• Average Volume (3M): 23.26M
• Price to Earnings (P/E): 20.7
• Beta (1Y): 2.42
• Revenue Growth: 48.85%
• EPS Growth: 997.29%
• Country: US
• Employees: 48,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 3.03
• Shares Outstanding: 1,119,125,100
• 10 Day Avg. Volume: 30,389,756
• 30 Day Avg. Volume: 23,264,146
• PEG Ratio: 0.02
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 3.55
• P/FCF Ratio: 7.58
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 3.82
• Enterprise Value/Gross Profit: 9.61
• Enterprise Value/Ebitda: 7.73
• 1Y Price Target: $197.00
• Price Target Upside: 25.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 27

• Rating: 80 Outperform
• Price Target: $186.00 ▲(18.27% Upside)

Micron's strong financial performance and technical indicators are the primary drivers of its high stock score. The company's record earnings and strategic investments in advanced technologies further bolster its outlook. However, the high valuation and potential overbought conditions suggest some caution is warranted.

Positive Factors

Revenue Growth

Micron's significant revenue growth reflects strong market demand and effective strategic execution, bolstering its competitive position in the semiconductor industry.

Advanced Technology Leadership

Leadership in advanced technology enhances Micron's competitive edge, enabling it to deliver high-performance products and maintain market leadership.

Data Center Business Surge

The surge in data center business underscores Micron's ability to capitalize on growing demand for data storage solutions, driving long-term revenue growth.

Negative Factors

NAND Revenue Challenges

Declining NAND revenue indicates potential market challenges and competitive pressures, which could impact Micron's overall profitability if not addressed.

Increased Operating Expenses

Rising operating expenses, particularly in R&D, may pressure margins and require careful management to sustain profitability and financial health.

Potential Supply Constraints

Supply constraints could limit Micron's ability to meet demand, impacting growth and necessitating strategic investment to ensure supply chain resilience.

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 generates revenue primarily through the sale of its memory and storage products, which include DRAM, NAND flash memory, and specialty memory solutions. The company operates on a volume-based pricing model, where revenues are driven by the demand and pricing of its products in the market. Key revenue streams include sales to original equipment manufacturers (OEMs), data center operators, and consumer electronics companies. Additionally, Micron benefits from strategic partnerships with major technology firms and cloud service providers, which helps secure long-term contracts and expands its market reach. The company also invests in research and development to innovate and stay competitive in the fast-evolving semiconductor landscape, which further contributes to its earnings potential.

Micron Financial Statement Overview

Summary

Micron demonstrates strong profitability and growth in the TTM period, with a solid balance sheet and efficient equity utilization. However, challenges in maintaining consistent free cash flow growth and managing debt levels warrant cautious optimism.

Income Statement

Micron's income statement shows strong performance with a TTM gross profit margin of 39.79% and a net profit margin of 22.84%, indicating robust profitability. The revenue growth rate of 10.54% in the TTM period highlights a positive growth trajectory. The EBIT and EBITDA margins are also healthy at 16.54% and 42.82%, respectively. However, the company experienced volatility in previous years, with a significant dip in 2023, which could pose a risk if such fluctuations recur.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.27 in the TTM period, showing moderate leverage. The return on equity (ROE) is strong at 17.05%, indicating efficient use of equity. The equity ratio stands at 65.41%, suggesting a solid capital structure. However, the increase in total debt over the years should be monitored to ensure it does not impact financial flexibility.

Cash Flow

Micron's cash flow statement reveals a mixed picture. The operating cash flow to net income ratio is 1.33, indicating good cash generation relative to net income. However, the free cash flow growth rate is negative at -2.33% in the TTM period, reflecting challenges in maintaining free cash flow. The free cash flow to net income ratio of 0.60 suggests a reasonable conversion of net income to free cash flow, but the negative growth trend is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.38B	37.38B	25.11B	15.54B	30.76B	27.70B
Gross Profit	14.87B	14.87B	5.61B	-1.42B	13.90B	10.42B
EBITDA	18.48B	18.48B	8.94B	2.21B	16.74B	12.93B
Net Income	8.54B	8.54B	778.00M	-5.83B	8.69B	5.86B
Balance Sheet
Total Assets	82.80B	82.80B	69.42B	64.25B	66.28B	58.85B
Cash, Cash Equivalents and Short-Term Investments	10.31B	10.31B	8.11B	9.59B	9.33B	8.63B
Total Debt	15.28B	15.28B	14.01B	13.93B	7.52B	7.28B
Total Liabilities	28.63B	28.63B	24.29B	20.13B	16.38B	14.92B
Stockholders Equity	54.16B	54.16B	45.13B	44.12B	49.91B	43.93B
Cash Flow
Free Cash Flow	8.93B	1.67B	121.00M	-6.12B	3.11B	2.44B
Operating Cash Flow	17.52B	17.52B	8.51B	1.56B	15.18B	12.47B
Investing Cash Flow	-14.09B	-14.09B	-8.31B	-6.19B	-11.59B	-10.59B
Financing Cash Flow	-850.00M	-850.00M	-1.84B	4.98B	-2.98B	-1.78B

Micron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 157.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 157.27 is above the 20-day moving average (MA) of 149.31, above the 50-day MA of 129.19, and above the 200-day MA of 104.89, indicating a bullish trend. The MACD of 10.45 indicates Positive momentum. The RSI at 68.71 is Neutral, neither overbought nor oversold. The STOCH value of 29.64 is Neutral, 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
NVDA	81 Outperform	$4.33T	50.72	86.48%	0.02%	71.55%	64.54%
MU	80 Outperform	$176.00B	20.72	17.20%	0.29%	48.85%	997.29%
AMAT	76 Outperform	$162.45B	24.31	35.03%	0.84%	6.70%	-5.95%
WDC	74 Outperform	$37.08B	22.15	33.59%	0.19%	2.12%	―
AMD	73 Outperform	$258.78B	91.79	4.75%	―	27.17%	108.67%
INTC	63 Neutral	$165.79B	-7.45	-20.95%	0.35%	-3.72%	-2120.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Micron Corporate Events

Micron Raises Q4 2025 Revenue Guidance

On August 11, 2025, Micron Technology, Inc. announced an update to its fourth-quarter fiscal 2025 guidance, reflecting improved pricing and strong execution. The company raised its revenue guidance to $11.2 billion ± $100 million, non-GAAP gross margins to 44.5% ± 0.5%, and non-GAAP EPS to $2.85 ± $0.07, indicating positive market conditions, particularly in the DRAM sector.