MICRON TECHNOLOGY INC (MU)

Price—Loading quote

AI: Fair-priced

Price checkMicron looks cheap on peak earnings but expensive if profits return toward normal.

Using 1.129 billion May shares, the close implies about $1.10 trillion of equity value. Fiscal 2026 earnings per share through three quarters totaled $41.34; adding management’s adjusted $31 fourth-quarter midpoint, which excludes some costs, gives roughly $72.34 and a price near 13.4 times profit. Yet the price is 128 times fiscal 2025’s $7.59. It needs roughly $65 of durable annual profit for a 15-times valuation, or $81 for 12 times. That balance supports a Fair-priced verdict.

Big pictureArtificial intelligence transformed profits, yet Micron’s history shows memory booms can reverse brutally.

Fiscal third-quarter revenue reached $41.46 billion, up from $9.30 billion a year earlier, while net income reached $28.24 billion. Operating cash was $25.39 billion and capital spending was $7.83 billion, leaving $17.56 billion of free cash flow, meaning cash left after running and investing in the business. Durability remains unproven: Micron lost $5.83 billion in fiscal 2023 after earning $8.69 billion in 2022. Customer contracts with pricing floors improve visibility, but cannot eliminate demand and supply cycles.

Business strengthRecord cash rebuilt the balance sheet, while spending and dilution still deserve attention.

May cash and equivalents of $25.00 billion exceeded $5.14 billion of debt, reversing fiscal 2025’s $4.38 billion net-debt position. Current assets were $66.74 billion against $19.49 billion of near-term obligations, providing substantial downside protection. However, first-three-quarter capital spending totaled $19.60 billion, with about $10 billion more planned for the fourth quarter. Buybacks totaled only $650 million, dividends $437 million, and shares rose from 1.109 billion in fiscal 2024 to 1.129 billion; roughly $954 million of stock compensation also diluted per-share gains.

What could change the storyTight supply could extend exceptional profits, but new capacity or weaker demand would reset them.

The bull case is concrete: fourth-quarter guidance called for $50 billion of revenue and $31 of adjusted earnings per share, while 16 customer agreements use minimum purchases, deposits and pricing floors. The bear case is equally specific: Micron’s more-than-$250 billion United States buildout, plus rival capacity, could eventually end shortages; customers can also redesign systems to use less costly memory. At $971.66, the thesis needs annual earnings comfortably above about $65 and strong cash generation after factory spending. Falling prices, weaker commitments or rising shares would break it.

$971.66 price considered

AI: News

Record results and guidanceRecord results showed that scarce memory was producing profits far beyond prior expectations.

On June 24, Micron reported fiscal third-quarter revenue of $41.46 billion, versus $9.30 billion a year earlier, and net income of $28.24 billion. It guided the fourth quarter to $50 billion of revenue and adjusted earnings of $31 per share, both above prior expectations. Reuters reported a 12% after-hours jump; the next regular session closed 15.7% higher. The reaction is consistent with investors raising profit expectations as scarce memory allowed sharply higher prices.

Customer contracts deepenLong-term customer contracts added revenue protection and made the current memory boom less fragile.

On June 24, Micron disclosed 16 strategic customer agreements, including $22 billion of customer commitments and about $100 billion of remaining contracted obligations. Reuters said five-year terms included minimum-purchase requirements, cash deposits and pricing floors. July announcements named General Motors, Ford and seven major automotive suppliers or technology partners. These contracts can stabilize factory planning and protect margins; no clean share-price reaction can be isolated because the announcements overlapped with earnings-driven volatility and broad chip-market moves.

United States expansion acceleratesA larger domestic factory plan showed confidence, but committed Micron to enormous future spending.

On July 9, Micron raised planned United States fabrication and technology investment to more than $250 billion through 2035, targeting 40% of its dynamic random-access memory production domestically. It separately proposed up to $3 billion for supply-chain investments. Shares closed 4.5% higher that day, but broad technology gains mean attribution is uncertain. The spending could secure long-run capacity and public support, yet it also raises the cash required before new factories earn returns.

Shortage outlook strengthensManagement said shortages could last years, supporting prices while highlighting dependence on artificial intelligence demand.

At an August 10 KeyBanc forum, Micron executive Sumit Sadana said high-bandwidth memory for artificial-intelligence servers was consuming wafer supply and that new factories take years to build and ramp. He said Micron lacked visibility on when supply would catch demand. Shares rose from $861.00 on August 10 to $971.66 on August 14, a 12.9% gain. The comments likely supported scarcity expectations, but analyst upgrades and a broader chip rebound prevent confident attribution.

Revenue

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2018

2019

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2018

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$37.38B	$25.11B	$15.54B	$30.76B	$27.70B	$21.43B	$23.41B	$30.39B	$20.32B	$12.40B	$16.19B	$16.36B	$9.07B	$8.23B	$8.79B	$8.48B	$4.80B
Gross profit	$14.87B	$5.61B	−$1.42B	$13.90B	$10.42B	$6.55B	$10.70B	$17.89B	$8.44B	$2.50B	$5.21B	$5.44B	$1.85B	$968.0M	$1.76B	$2.71B	−$440.0M
Research & development	$3.80B	$3.43B	$3.11B	$3.12B	$2.66B	$2.60B	$2.44B	$2.14B	$1.82B	$1.62B	$1.54B	$1.37B	$931.0M	$918.0M	$791.0M	$624.0M	$647.0M
Operating income	$9.77B	$1.30B	−$5.75B	$9.70B	$6.28B	$3.00B	$7.38B	$14.99B	$5.87B	$168.0M	$3.00B	$3.09B	$236.0M	−$612.0M	$761.0M	$1.59B	−$1.68B
EBITDAderived	$18.12B	$9.08B	$2.01B	$16.82B	$12.50B	$8.65B	$12.80B	$19.75B	$9.73B	$3.15B	$5.80B	$5.36B	$2.16B	$1.61B	$2.92B	$3.51B	$438.0M
Net income	$8.54B	$778.0M	−$5.83B	$8.69B	$5.86B	$2.69B	$6.31B	$14.13B	$5.09B	−$276.0M	$2.90B	$3.04B	$1.19B	−$1.03B	$167.0M	$1.85B	−$1.88B
Basic EPSper diluted share	$7.65	$0.70	-$5.34	$7.81	$5.23	$2.42	$5.67	$12.27	$4.67	-$0.27	$2.71	$2.87	$1.16	-$1.04	$0.17	$2.09	-$2.35
Diluted EPSper diluted share	$7.59	$0.70	-$5.34	$7.75	$5.14	$2.37	$5.51	$11.51	$4.41	-$0.27	$2.47	$2.54	$1.13	-$1.04	$0.17	$1.85	-$2.35

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys3$7.82M disclosed value

Sells (SEC code S)312$302.49M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 26, 2026Form 4 · 10b5-1	MEHROTRA SANJAYPresident and CEO	SellCommon Stock	811	$1.2K	$967.1K	344.5K
Jun 26, 2026Form 4 · 10b5-1	MEHROTRA SANJAYPresident and CEO	SellCommon Stock	282	$1.2K	$336.1K	345.3K
Jun 26, 2026Form 4 · 10b5-1	MEHROTRA SANJAYPresident and CEO	SellCommon Stock	214	$1.2K	$254.8K	345.6K
Jun 26, 2026Form 4 · 10b5-1	MEHROTRA SANJAYPresident and CEO	SellCommon Stock	264	$1.2K	$314.1K	345.8K
Jun 26, 2026Form 4 · 10b5-1	MEHROTRA SANJAYPresident and CEO	SellCommon Stock	153	$1.2K	$181.8K	346.1K

Review ownership filings at SEC.gov ↗

MICRON TECHNOLOGY INC (MU)

Financial charts

Financial statements

Insider buys & sells