Micron (MU) AI Stock Analysis

• Market Cap: $77.73B
• Dividend Yield: 0.58%
• Average Volume (3M): 28.16M
• Price to Earnings (P/E): 16.7
• Beta (1Y): 2.33
• Revenue Growth: 71.05%
• EPS Growth: N/A
• Country: US
• Employees: 48,000
• Sector: Technology
• Sector Strength: 63
• Industry: Semiconductors
• EPS (TTM): 1.56
• Shares Outstanding: 1,117,571,500
• 10 Day Avg. Volume: 37,607,483
• 30 Day Avg. Volume: 28,163,970
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.63
• Price to Cash Flow (P/CF): 8.10
• P/FCF Ratio: 448.30
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 19.58
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $127.22
• Price Target Upside: 59.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 24

Micron's overall stock score reflects strong financial performance, with significant improvements in revenue growth and profitability. However, technical indicators suggest bearish market sentiment, presenting a risk. The company shows positive strategic direction through corporate events and earnings call guidance, although valuation remains moderate. These factors collectively provide a balanced outlook for Micron's stock.

Positive Factors

Business Reorganization

Micron's announcement that it is reorganizing its business units should be considered a positive as it provides investors with greater visibility into its AI-driven HBM + Cloud positioning and momentum.

Market Positioning

Micron has been the sole provider of LPDDR5X memory for NVIDIA's platforms, positioning it strongly in the market with continued expectations of being the primary supplier.

Negative Factors

Demand Decline

DRAM ship reported a high single-digit percentage quarter-over-quarter decline, indicating a potential decrease in demand for one of MU's key products.

Gross Margins

It appears Micron gross margins could peak below previous upturns, and as a result the price target is lowered to reflect a lower multiple.

Micron Business Overview & Revenue Model

Company Description

Micron Technology, Inc. is a global leader in the semiconductor industry, specializing in the production of innovative memory and storage solutions. Its product portfolio includes DRAM, NAND, NOR, and 3D XPoint memory technologies, which are used in a variety of sectors, including computing, networking, mobile, automotive, industrial, and consumer electronics. Micron's advanced semiconductor solutions are essential for enabling the digital transformation and data-centric innovations across the globe.

How the Company Makes Money

Micron makes money primarily by designing, manufacturing, and selling semiconductor memory products. Its revenue model is centered around the production and sale of DRAM and NAND flash memory, which are integral to a wide range of electronic devices. The company serves various markets, including data centers, personal computing, mobile devices, automotive, industrial applications, and consumer electronics. Micron collaborates with major technology companies and original equipment manufacturers (OEMs) to integrate its memory and storage solutions into their products. Additionally, the company invests in research and development to advance its technology and maintain its competitive edge in the market. Key revenue streams include direct sales to OEMs, channel partners, and distributors worldwide.

Micron Financial Statement Overview

Summary

Micron's financial performance shows notable improvements across key metrics. The company achieved impressive revenue growth and profitability recovery, supported by strong margins and cash flow generation. The balance sheet remains robust with conservative leverage and high equity levels, positioning the company well for future growth in the semiconductor industry.

Income Statement

Micron's TTM revenue grew by 24.72% compared to the previous year, indicating strong top-line growth. The gross profit margin improved significantly to 34.73% in TTM, from a negative margin in 2023, reflecting enhanced operational efficiency. Net profit margin increased to 14.92% in TTM, moving from a loss in prior years, highlighting a strong recovery in profitability. Both EBIT and EBITDA margins improved, suggesting better cost management and higher earnings quality.

Balance Sheet

Micron maintains a solid balance sheet with a debt-to-equity ratio of 0.30, indicating a conservative leverage position. The equity ratio stands at 66.57%, showcasing strong equity backing relative to total assets. Return on equity improved remarkably to 9.61% in TTM, up from negative returns, signaling improved profitability and effective use of equity capital.

Cash Flow

Free cash flow grew significantly, with a positive shift in TTM. The operating cash flow to net income ratio is 2.80, demonstrating robust cash generation relative to earnings. The free cash flow to net income ratio of 1.68 further supports the company's strong cash flow performance, indicating efficient capital expenditure and healthy cash reserves.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
25.11B	15.54B	30.76B	27.70B	21.43B
	Gross Profit
5.61B	-1.42B	13.90B	10.42B	6.55B
	EBIT
1.30B	-5.75B	9.70B	6.28B	3.00B
	EBITDA
9.58B	2.49B	16.88B	12.62B	8.83B
	Net Income Common Stockholders
778.00M	-5.83B	8.69B	5.86B	2.69B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.11B	9.59B	9.33B	8.63B	8.14B
	Total Assets
69.42B	64.25B	66.28B	58.85B	53.68B
	Total Debt
14.01B	13.93B	7.52B	7.28B	7.18B
	Net Debt
6.97B	5.36B	-746.00M	-483.00M	-448.00M
	Total Liabilities
24.29B	20.13B	16.38B	14.92B	14.68B
	Stockholders Equity
45.13B	44.12B	49.91B	43.93B	39.00B
Cash Flow		Free Cash Flow
121.00M	-6.12B	3.11B	2.44B	83.00M
	Operating Cash Flow
8.51B	1.56B	15.18B	12.47B	8.31B
	Investing Cash Flow
-8.31B	-6.19B	-11.59B	-10.59B	-7.59B
	Financing Cash Flow
-1.84B	4.98B	-2.98B	-1.78B	-317.00M

Micron Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 79.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MU, the sentiment is Neutral. The current price of 79.78 is above the 20-day moving average (MA) of 74.51, below the 50-day MA of 87.43, and below the 200-day MA of 97.20, indicating a neutral trend. The MACD of -4.10 indicates Negative momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 89.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MU.

Micron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KLAC	79 Outperform	$92.30B	29.21	96.81%	0.91%	12.19%	20.80%
AMAT	78 Outperform	$123.13B	19.65	35.19%	1.05%	4.45%	-10.01%
LRCX	78 Outperform	$91.68B	19.91	53.14%	1.25%	20.33%	31.89%
MU	76 Outperform	$77.73B	16.72	10.10%	0.58%	71.05%	―
AMD	73 Outperform	$157.01B	96.34	2.89%	―	13.69%	91.75%
Sector *	59 Neutral	$10.72B	10.22	-6.67%	3.02%	7.39%	-11.27%
INTC	46 Neutral	$87.43B	―	-18.66%	2.49%	-3.97%	-562.40%

Micron Corporate Events

Micron Expands Credit Facility with HSBC Bank

On March 12, 2025, Micron Technology, Inc. entered into a new revolving credit agreement with HSBC Bank USA, replacing its existing $2.5 billion facility with a $3.5 billion revolving credit facility. This strategic financial move, which includes provisions for potential expansion and improved terms, is aimed at supporting the company’s general corporate purposes and enhancing its financial flexibility. The agreement underscores Micron’s commitment to maintaining a robust financial structure, with no outstanding borrowings reported under the new facility as of the filing date.

Micron Appoints New Independent Directors to Board

On March 5, 2025, Micron Technology, Inc. announced the appointment of Anna Christine Simons and Teyin Mark Liu to its Board of Directors, both recognized as independent directors under Nasdaq rules. Simons, with extensive experience in global technology and finance, and Liu, a former executive at Taiwan Semiconductor Manufacturing Company, are expected to provide strategic insights to help Micron capitalize on opportunities in AI and semiconductor markets, thereby strengthening its industry positioning.