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Micron
(NASDAQ:MU)
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Rating:80Outperform
Price Target:
$1,073.00
▲(15.01% Upside)
Action:Reiterated
Date:08/26/26
MU scores well primarily on sharply improved financial performance (strong profitability, cash generation, and reduced leverage) and an earnings call that reinforced record-level momentum with aggressive guidance and greater demand visibility via SCAs. The score is held back by the inherently cyclical nature of results and mixed technicals (near-term strength but below the 50DMA), while valuation is supportive but moderated by high volatility (beta) and sustainability risks tied to pricing and elevated CapEx/OpEx.
Positive Factors
Strategic customer agreements improve demand visibility
Long-term customer agreements can improve demand visibility, support capacity planning and deepen relationships with major buyers. Their broadening coverage may reduce reliance on purely spot-market volumes, although some pricing remains variable.
Negative Factors
Memory earnings remain structurally cyclical
Micron’s dependence on DRAM and NAND supply-demand cycles creates material volatility in pricing, margins and cash flow. Even strong execution cannot fully remove the risk that future oversupply causes a sharp earnings reset.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic customer agreements improve demand visibility
Long-term customer agreements can improve demand visibility, support capacity planning and deepen relationships with major buyers. Their broadening coverage may reduce reliance on purely spot-market volumes, although some pricing remains variable.
Read all positive factors
Micron Key Performance Indicators (KPIs)
Any
Revenue by Technology
Shows how much revenue comes from different memory technologies (DRAM, NAND, and other products), revealing which products are driving growth and how exposed Micron is to memory price swings. Tracking technology mix highlights where margins and demand are strongest and where future investment or competitive pressure might matter most.
Shows how much revenue comes from different memory technologies (DRAM, NAND, and other products), revealing which products are driving growth and how exposed Micron is to memory price swings. Tracking technology mix highlights where margins and demand are strongest and where future investment or competitive pressure might matter most.
Data provided by:
The Fly
The FlyMicron (MU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.05T
Dividend Yield0.06%
Average Volume (3M)46.78M
Price to Earnings (P/E)20.9
Beta (1Y)2.46
Revenue Growth166.98%
EPS Growth701.44%
CountryUS
Employees53,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)44.81
Shares Outstanding1,129,393,200
10 Day Avg. Volume42,981,201
30 Day Avg. Volume46,776,108
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)2.51
Price to Sales (P/S)3.64
P/FCF Ratio81.63
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$1,556.55Price Target Upside66.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering31
EPS Forecast (FY)73.23
Revenue Forecast (FY)$129.40B
Micron Business Overview & Revenue Model
Company Description
Micron Technology, Inc. is a global leader specializing in the development, manufacture, and sale of advanced semiconductor memory and storage solutions. Its operations are structured across four primary business segments: Compute and Networking, ...
How the Company Makes Money
Micron primarily makes money by selling memory and storage products—mainly DRAM and NAND—into end markets through a mix of direct sales to large original equipment manufacturers (OEMs) and cloud/data-center customers, sales to original design manu...
Micron Earnings Call Summary
Earnings Call Date:Jun 24, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 30, 2026
Earnings Call Sentiment Positive
The call communicated exceptionally strong near-term financial performance (record revenue, gross margin, EPS, cash flow) and meaningful strategic progress (16 SCAs, technology ramps, HBM momentum, strong balance sheet). These positives were balanced against material industry-wide and structural challenges: persistent supply constraints expected beyond 2027, rising cost-per-bit and manufacturing complexity, heavy near-term capital spending, and some uncertainty around SCA pricing structure and the ultimate revenue mix. On balance, the company’s execution, cash generation, strategic contracts, and technology leadership substantially outweigh the risks highlighted, while the risks underscore multi-year capacity and cost challenges that management is explicitly addressing.Positive Updates
Record Revenue, Gross Margin and EPS
Fiscal Q3 revenue $41.5B (+74% sequential, +346% YoY); consolidated gross margin 84.9% (up 10 percentage points sequentially); non-GAAP diluted EPS $25.11 (+106% sequential). Fifth consecutive quarterly revenue record and largest sequential revenue increase in company history ($17.6B).
Negative Updates
Persistent Supply Constraints and No Line of Sight
Management expects DRAM and NAND tightness to persist beyond calendar 2027 with no clear line of sight to when supply will catch up. Constraints cited include long lead times for greenfield fabs, shortage of skilled workers, regulatory/permitting complexity, and energy infrastructure limits.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Revenue, Gross Margin and EPS
Fiscal Q3 revenue $41.5B (+74% sequential, +346% YoY); consolidated gross margin 84.9% (up 10 percentage points sequentially); non-GAAP diluted EPS $25.11 (+106% sequential). Fifth consecutive quarterly revenue record and largest sequential revenue increase in company history ($17.6B).
Read all positive updates
Company Guidance
Micron guided fiscal Q4 revenue of $50 billion ± $1 billion, gross margin of ~86%, operating expenses of ≈$1.65 billion, a diluted share count of ~1.15 billion and non‑GAAP EPS of $31 ± $1, with an expected tax rate around 15%. They expect Q4 CapEx of about $10 billion (bringing fiscal 2026 CapEx to ≈$27 billion), said quarterly CapEx in fiscal 2027 will be above Q4 levels, and flagged a ~$1 billion increase in operating expenses for fiscal 2027 (weighted to the second half); free cash flow is expected to increase substantially in Q4 after a record Q3 free cash flow of $18.3 billion and operating cash flow of $25.4 billion. On strategic customer agreements they reported RPO > $5 billion at quarter end and aggregate RPO on executed SCAs of ≈ $100 billion, expect to receive ~$22 billion of customer deposits (≈$18 billion cash) to appear on the balance sheet in Q4, noted the SCAs cover roughly 20% of DRAM volume and ~33% of NAND volume (rising to about half or more of company revenue when all are executed), and said they will increase capital returns after 12/09/2026 with a long‑term intent to return 100% of excess cash.Micron Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 90.27B | 37.38B | 25.11B | 15.54B | 30.76B | 27.70B |
| Gross Profit | 65.51B | 14.87B | 5.61B | -1.42B | 13.90B | 10.42B |
| EBITDA | 68.35B | 18.49B | 8.94B | 2.21B | 16.74B | 12.93B |
| Net Income | 50.47B | 8.54B | 778.00M | -5.83B | 8.69B | 5.86B |
Balance Sheet | ||||||
| Total Assets | 134.11B | 82.80B | 69.42B | 64.25B | 66.28B | 58.85B |
| Cash, Cash Equivalents and Short-Term Investments | 26.02B | 10.31B | 8.11B | 9.59B | 9.33B | 8.63B |
| Total Debt | 6.38B | 15.28B | 14.01B | 13.93B | 7.52B | 7.28B |
| Total Liabilities | 33.39B | 28.63B | 24.29B | 20.13B | 16.38B | 14.92B |
| Stockholders Equity | 100.72B | 54.16B | 45.13B | 44.12B | 49.91B | 43.93B |
Cash Flow | ||||||
| Free Cash Flow | 26.17B | 1.67B | 121.00M | -6.12B | 3.11B | 2.44B |
| Operating Cash Flow | 51.43B | 17.52B | 8.51B | 1.56B | 15.18B | 12.47B |
| Investing Cash Flow | -24.89B | -14.09B | -8.31B | -6.19B | -11.59B | -10.59B |
| Financing Cash Flow | -11.71B | -850.00M | -1.84B | 4.98B | -2.98B | -1.78B |
Micron Technical Analysis
Positive
932.97
Price Trends
958.88
Negative
825.43
Positive
581.39
Positive
Market Momentum
7.71
Negative
51.34
Neutral
26.70
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 932.97 is above the 20-day moving average (MA) of 912.35, below the 50-day MA of 958.88, and above the 200-day MA of 581.39, indicating a neutral trend. The MACD of 7.71 indicates Negative momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 26.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MU.
Micron Risk Analysis
Micron disclosed 33 risk factors in its most recent earnings report. Micron reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Micron Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.05T | 20.94 | 70.55% | 0.06% | 166.98% | 701.44% | |
73 Outperform | $1.70T | 57.45 | 36.40% | 0.67% | 32.29% | 125.17% | |
73 Outperform | $210.52B | 83.40 | 16.84% | 0.12% | 34.07% | ― | |
69 Neutral | $8.20B | 7.67 | 32.04% | 0.74% | 69.56% | 260.84% | |
63 Neutral | $39.91B | 102.60 | 6.90% | 2.31% | 20.93% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $459.67B | -41.82 | -10.76% | ― | 7.47% | 55.56% |
* Technology Sector Average
MU
Micron
938.40
816.60
670.42%
AVGO
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355.59
49.19
16.05%
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263.11
181.48
222.32%
Micron Corporate Events
Business Operations and StrategyExecutive/Board Changes
Micron Reshapes Leadership Team for AI-Driven Growth
Positive
Aug 26, 2026
On August 26, 2026, Micron Technology, Inc. announced promotions for two long-time executives to newly expanded leadership roles intended to sharpen execution and align the organization with accelerating AI-driven demand for advanced memory. Manis...
Executive/Board Changes
Micron Appoints Alexis Black Björlin to Board
Positive
Jun 9, 2026
On June 9, 2026, Micron Technology, Inc. appointed Alexis Black Björlin to its board of directors, expanding the board to nine members, eight of whom are deemed independent under Nasdaq rules. Björlin, who will also serve on the Governan...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.