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Micron Technology Inc MU

Morningstar Rating
$114.26 −3.19 (2.72%)
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Company Report

Micron Earnings: We Raise Our DRAM Forecast and Valuation Behind Stronger Pricing Assumptions

We raise our fair value estimate for no-moat Micron Technology to $110 per share, from $80, behind a higher medium-term growth and margin forecast. We now expect significant growth through fiscal 2026 for Micron, driven primarily by higher DRAM expectations. We believe high-bandwidth memory, or HBM, will augment growth, but we also expect standard DRAM to benefit from strong pricing over the next few years. AI investment is a meaningful contributor to our forecast across both HBM and standard DRAM, with data center GPUs requiring higher memory content, as well as higher content in AI-enabled PCs and smartphones. We see demand outpacing supply through calendar 2025, supporting high prices that should drive strong revenue for Micron. We also expect gross margins to benefit from strong pricing and a rising mix of HBM revenue, which is margin-accretive already.

Price vs Fair Value

MU is trading at a 568% premium.
Price
$114.26
Fair Value
$286.00
Uncertainty
High
1-Star Price
$649.10
5-Star Price
$24.00
Economic Moat
Nlf
Capital Allocation
Zgsktmx

Bulls Say, Bears Say

Bulls

When memory markets are in an upswing and demand is strong, Micron’s sales growth and profitability can be impressive.

Bears

Micron has a high fixed cost base that leaves it vulnerable to underutilization charges and major profit compression when memory markets enter a downturn.

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News

Trading Information

Previous Close Price
$117.45
Day Range
$113.85117.21
52-Week Range
$61.75157.54
Bid/Ask
$114.80 / $115.25
Market Cap
$126.70 Bil
Volume/Avg
69,963 / 21.6 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
5.89
Dividend Yield (Trailing)
0.40%
Dividend Yield (Forward)
0.40%
Total Yield
0.40%

Company Profile

Micron is one of the largest semiconductor companies in the world, specializing in memory and storage chips. Its primary revenue stream comes from dynamic random access memory, or DRAM, and it also has minority exposure to not-and or NAND, flash chips. Micron serves a global customer base, selling chips into data centers, mobile phones, consumer electronics, and industrial and automotive applications. The firm is vertically integrated.
Sector
Technology
Industry
Semiconductors
Stock Style Box
Large Core
Total Number of Employees
43,000

Competitors

Valuation

Metric
MU
005930
000660
Price/Earnings (Normalized)
29.19
Price/Book Value
2.871.582.60
Price/Sales
5.891.893.59
Price/Cash Flow
17.229.6714.79
Price/Earnings
MU
005930
000660

Financial Strength

Metric
MU
005930
000660
Quick Ratio
1.981.780.77
Current Ratio
3.412.551.41
Interest Coverage
−3.0715.09−2.83
Quick Ratio
MU
005930
000660

Profitability

Metric
MU
005930
000660
Return on Assets (Normalized)
−1.25%4.72%−4.08%
Return on Equity (Normalized)
−1.85%6.10%−7.40%
Return on Invested Capital (Normalized)
−1.37%4.99%−3.51%
Return on Assets
MU
005930
000660
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