SuperworthMicron Technology MU
- Market cap
- $992.9B
- PE
- 11.8×
- 10y median 18.1×
- Forward PE
- 5.0×
- 10y median 9.5×
- Price to sales
- 7.5×
- EV/EBIT
- 9.6×
- Revenue, 12 months
- $133.2B
- +256% on a year ago
- Net margin
- 63.8%
- Free cash flow yield
- 5.9%
A Superworth story
Priced for a bust that Micron's own numbers do not show yet
Record profits and long contracts on one side, a Chinese rival and new factories on the other
A low PE, and memory's low PEs have been warnings
Micron trades at about 12 times the last twelve months of earnings, below its own ten-year median of 17 and far below other chipmakers. For a memory maker that is not automatically cheap. Its PE was lowest in late 2018, near a profit peak, just before profits fell most of the way. The tall spike in late 2024 came when profits were still small.
The fear came back in October
The stock rose about sixfold from last October's low to a peak in late June, and now sits more than a quarter below it. In mid-October, China's top maker of DRAM (the working memory in computers), CXMT, claimed a design breakthrough that shook memory shares. Then chip stocks sold off on doubts about AI spending and the borrowing behind it.
Nothing in the latest report has cracked
Quarterly revenue went from 4.7 billion dollars in late 2023 to 54.2 billion in the quarter to early September. That is six straight quarters of growth, each a record, and Micron guided higher again for the December quarter. AI chips need far more memory, and Micron says its high bandwidth memory (HBM, stacked memory that sits beside AI chips) is under agreement for most of 2027.
A shortage lets the seller set the price
Net margin went from a twelve-month loss of 42.5% of sales in late 2023 to a profit of 63.8% over the last twelve months, the highest in ten years. Memory chips are close to interchangeable, so margins like these come from scarce supply more than a moat. That is why Micron looks cheap on earnings but dear on sales.
Twice before, peak profits fell most of the way
Twelve-month EPS peaked at about 12 dollars in late 2018 and fell by about four fifths within two years. The 2022 peak turned into a loss within a year, one still there in mid-2024. Each time, new supply arrived and prices fell. Today's 74.21 dollars is more than six times the 2018 high. The fear is the same fall from a far higher peak.
Micron is building the next wave of supply itself
Capital spending was about 31 billion dollars in fiscal 2026, or 27.4 billion after government incentives, and Micron plans more in fiscal 2027, mostly for cleanroom space. Its new fabs (chip factories) start output from mid-2027. Micron says it sees no point yet when supply catches up with demand.
On expected earnings, the price allows for most of a bust
Today, consensus puts Micron at about 5 times adjusted earnings for the next twelve months (points before late September use hindsight). If those profits fell four fifths, as in 2018, it would be about 25 times, a little above its trailing PE's five-year median of 21. The hope is take-or-pay contracts, most with price floors, covering over a third of revenue through 2030. December's report is the next test.
What has happened lately
- The Associated Press (via BNN Bloomberg), U.S. markets are weighed down by an extended sell-off in the tech sectorMicron fell 5.6% as chip stocks dropped on doubts about how long the AI buildout lasts and whether AI companies can keep borrowing to fund it, with bond yields at multi-year highs.
- Nikkei Asia, Memory breakthrough by China's CXMT puts chip rivals on back footChina's top DRAM maker claimed a next-generation memory design advance that shook memory stocks. Analysts say Samsung, SK Hynix and Micron have other ways to keep their edge.
- Micron (SEC filing), Micron reports record fiscal Q4 2026 revenue of $54.2 billion and guides Q1 to $61.5 billionNon-GAAP EPS $33.42 at an 87% gross margin, Q1 FY27 guide of $61.5B plus or minus $1.5B and $38.15 EPS, after FY26 capex of $27.4B net of government incentives.
- Micron, Micron's fiscal Q4 2026 prepared remarks: 26 take-or-pay agreements and no line of sight to balanceContracts estimated at over 35% of revenue through 2030, most with price floors, $32B in customer commitments, HBM for 2027 mostly agreed, new fab output from mid-2027, and higher FY27 capex for cleanroom space.
Headlines link to the original source.
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Charts
Financials
| Income statement | Q1 FY24 | Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $4.7B+16% | $5.8B+58% | $6.8B+82% | $7.8B+93% | $8.7B+84% | $8.1B+38% | $9.3B+37% | $11.3B+46% | $13.6B+57% | $23.9B+196% | $41.5B+346% | $54.2B+379% | |
| Cost of revenue | $4.8B+49% | $4.7B−3% | $5B+13% | $5B+13% | $5.4B+13% | $5.1B+7% | $5.8B+16% | $6.3B+25% | $6B+12% | $6.1B+20% | $6.4B+11% | $7.2B+15% |
| Gross profit | −$35M | $1.1B | $1.8B | $2.7B | $3.3B | $3B+175% | $3.5B+92% | $5.1B+85% | $7.6B+128% | $17.8B+499% | $35.1B+899% | $47B+831% |
| R&D | $845M−1% | $832M+6% | $850M+12% | $903M+26% | $888M+5% | $898M+8% | $965M+14% | $1B+16% | $1.2B+32% | $1.3B+39% | $1.3B+36% | $1.9B+83% |
| SG&A | $263M+5% | $280M+21% | $291M+33% | $295M+35% | $288M+10% | $285M+2% | $318M+9% | $314M+6% | $337M+17% | $344M+21% | $407M+28% | $859M+174% |
| −$1.1B+440% | $191M | $719M | $1.5B | $2.2B | $1.8B+828% | $2.2B+202% | $3.7B+140% | $6.1B+182% | $16.1B+810% | $33.3B+1436% | $43.8B+1097% | |
| Interest expense | $132M+159% | $144M+62% | $150M+26% | $136M+5% | $118M−11% | $112M−22% | $123M−18% | $124M−9% | $74M−37% | $32M−71% | $0 | $0 |
| Pre-tax income | −$1.2B+556% | $170M | $715M | $1.5B | $2.2B | $1.8B+934% | $2.1B+196% | $3.6B+141% | $6.1B+182% | $16.2B+819% | $33.2B+1472% | $44.2B+1118% |
| $73M+813% | −$622M | $377M+171% | $623M | $283M+288% | $177M | $235M−38% | $429M−31% | $829M+193% | $2.4B+1240% | $5B+2018% | $6.6B+1435% | |
| Net income | −$1.2B+533% | $793M | $332M | $887M | $1.9B | $1.6B+100% | $1.9B+468% | $3.2B+261% | $5.2B+180% | $13.8B+771% | $28.2B+1398% | $37.7B+1078% |
| −$1.12+522% | $0.71 | $0.30 | $0.79 | $1.67 | $1.41+99% | $1.68+460% | $2.83+258% | $4.60+175% | $12.07+756% | $24.67+1369% | $32.87+1062% | |
| 1.1B+1% | 1.1B+2% | 1.1B+3% | 1.1B+3% | 1.1B+2% | 1.1B+1% | 1.1B+0% | 1.1B+1% | 1.1B+1% | 1.1B+2% | 1.1B+2% | 1.1B+1% |
Net income: 6 periods, Q4 FY21 to Q4 FY26: printed in the fourth-quarter results release.
EPS, diluted: Q4 FY10: quarter's net income to common over its shares, to the cent. 6 periods, Q4 FY21 to Q4 FY26: printed in the fourth-quarter results release.
Diluted shares: 7 periods, Q4 FY10 to Q4 FY20: share-days: the 12-month average less the 9-month, weighted by days. 3 periods, Q4 FY11 to Q4 FY16: a loss quarter: its basic count, share-days: the 12-month average less the 9-month, weighted by days. Q4 FY13: the earlier year to date counted no dilution: the quarter's basic count plus the later year to date's dilution. 6 periods, Q4 FY21 to Q4 FY26: printed in the fourth-quarter results release.
From each company's 10-Q and 10-K filings, the newest version of each figure. Quarters are as filed (a fourth quarter is the year less its first nine months), fiscal years as the 10-K prints them, restated where a later 10-K restated them, and balance sheet lines as of the period's end. A quarter whose 10-Q isn't filed yet is from the company's results release. Growth is on the same period a year earlier. A dash is a period with no figure for the line: the filing doesn't print it, or it hasn't been read yet.
Estimates
Next earnings report: .
| Quarter | Revenue | Range | EPS | Range | Analysts |
|---|---|---|---|---|---|
| Q1 FY27 | $61.6B | $58.9B to $69.1B | $38.19 | $35.96 to $41.89 | 19 |
| Q2 FY27 | $66.7B | $58.5B to $75.6B | $41.86 | $39.30 to $49.27 | 28 |
| Q3 FY27 | $71.6B | $67.3B to $78B | $45.57 | $42.03 to $50.88 | 13 |
| Q4 FY27 | $75.9B | $71.4B to $82.7B | $49.01 | $45.20 to $54.72 | 21 |
| Q1 FY28 | $80.1B | $75.3B to $87.3B | $52.31 | $48.25 to $58.41 | 13 |
| Q2 FY28 | $81.4B | $76.5B to $88.7B | $52.98 | $48.86 to $59.15 | 14 |
| Q3 FY28 | $83B | $78B to $90.4B | $53.99 | $49.79 to $60.28 | 14 |
| Q4 FY28 | $84.5B | $79.4B to $92.1B | $54.70 | $50.45 to $61.08 | 26 |
Peers
Companies in Semiconductors nearest Micron Technology's size, closest first.
| Company | Market cap | PE | Its 10y median PE | Fwd PE | P/S | Revenue growth | Net margin |
|---|---|---|---|---|---|---|---|
| MUMicron Technology | $992.9B | 11.8× | 18.1× | 5.0× | 7.5× | +256% | 63.8% |
| AMDAdvanced Micro Devices | $843.6B | 133× | 106× | 45.7× | 20.4× | +40% | 15.6% |
| AVGOBroadcom | $1.5T | 41.1× | 46.3× | 18.6× | 17.2× | +49% | 42.9% |
| INTCIntel | $438.6B | n/m | 13.3× | 50.0× | 7.7× | +7% | −19.8% |
| AMATApplied Materials | $299.4B | 32.5× | 19.7× | 21.3× | 9.7× | +8% | 30.1% |
| LRCXLam Research | $287.9B | 34.3× | 21.2× | 22.6× | 11.0× | +33% | 32.3% |
| TXNTexas Instruments | $260B | 36.9× | 24.1× | 27.0× | 12.5× | +20% | 34.3% |
| MRVLMarvell Technology | $200.4B | 75.4× | 30.1× | 40.3× | 21.2× | +31% | 27.9% |
| NVDANVIDIA | $5.1T | 26.7× | 54.4× | 17.5× | 16.8× | +83% | 63.7% |
| KLACKLA | $190.2B | 39.7× | 24.0× | 26.2× | 14.0× | +12% | 35.6% |
| ADIAnalog Devices | $189.5B | 46.4× | 39.5× | 24.1× | 13.7× | +34% | 29.8% |
| Peer median | $293.7B | 39.7× | 27.1× | 25.2× | 13.8× | +32% | 31.2% |
Investors who own it
Investors we follow who held Micron Technology at the end of Jun 30, 2026, from their 13F filings.
- David TepperAppaloosa15.1% of portfoliotrimmed
- Philippe LaffontCoatue Management7.5% of portfolioadded
- Gavin BakerAtreides Management7.4% of portfoliotrimmed
- Brad GerstnerAltimeter Capital2.5% of portfolionew
- Ron BaronBaron Capital0.1% of portfolioadded
- Ruane, Cunniff & GoldfarbRuane, Cunniff & Goldfarb (Sequoia Fund)0.0% of portfolio
- Lee AinslieMaverick Capital0.0% of portfolionew
- Bill NygrenHarris Associates (Oakmark)0.0% of portfolionew
- Baillie GiffordBaillie Gifford0.0% of portfolionew
More on Micron Technology
Each number over time
- PE ratio
- Forward PE
- Price to sales ratio
- EV/EBIT
- Price to free cash flow
- Price to book ratio
- Dividend yield
- Market cap
- Revenue
- EPS
- Free cash flow
- Profit margin
- Shares outstanding
Where it ranks
- #2of 433Technology stocks with the fastest revenue growth
- #5of 427Technology stocks with the highest profit margins
- #1of 75Semiconductor stocks with the highest profit margins
- #1of 74Semiconductor stocks with the fastest revenue growth
- #2of 95Technology stocks with the lowest forward PE
- #2of 83Technology stocks with the lowest PEG ratio
- #2of 47Semiconductor stocks with the lowest PE ratio
- #1of 23Semiconductor stocks with the lowest forward PE
Its groups
About
- Chief executive
- Sanjay Mehrotra, since 2017Co-founded SanDisk, not Micron. Micron CEO since 2017. Source
- Industry
- Semiconductors
- Sector
- Technology
Valuation data, not investment advice. Prices as of .