Start here if you're new
what it is
Micron makes the memory chips that let servers, phones, and cars store data and think faster.
how it gets paid
Last year Micron Technology made $37.4B in revenue.
why it's growing
Revenue grew 48.9% last year. The business is still ripping. Revenue rose 57% vs. prior year and gross margin reached 56.0%.
what just happened
Micron put up $13.6B in quarterly revenue, up 57% vs. prior year, but the last reported EPS came in a cent light.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
5/100 earnings predictability — expect surprises
47.0x trailing p/e — you're paying up for this one
0.1% dividend yield — cash in your pocket every quarter
32.5% return on capital — every dollar works hard here
xvary composite: 65/100 — average
What they do
Micron makes the memory chips that let servers, phones, and cars store data and think faster.
Micron sells the part of computing you cannot fake: memory. If your AI server needs more bandwidth, you buy better memory or your expensive GPU waits around. That is why Micron just posted $13.6B in quarterly revenue, up 57% vs. prior year, with 56.0% gross margin (gross margin → money left after making the product → pricing power is real).
How they make money
$37.4B
annual revenue · their business grew +48.9% last year
total revenue
$37.4B
+48.9%
The products that matter
manufactures memory and storage chips
Memory and Storage Chips
$37.4B revenue · +43.4% growth
it is the entire $37.4B business. that sounds simple because it is. if memory pricing and demand improve, revenue and margins move fast. if they do not, there is nowhere else to hide.
100% of revenue
ai accelerator memory
HBM memory
driving the current AI story
management tied strong HBM demand to guidance for $18.3B–$19.1B in next-quarter sales and $8.22–$8.62 adjusted EPS. that matters because the market is paying for durability, not just one loud quarter. this page does not break out HBM revenue, so you should not pretend the precision is higher than it is.
ai lever
broad memory cycle exposure
DRAM and NAND mix
no segment split disclosed here
that missing breakout is part of the story. you are underwriting a memory cycle more than a tidy set of business lines, and the 5/100 predictability score tells you the swings can get violent even when the long-term demand case sounds clean.
cycle first
Key numbers
$102B
FY2027 sales
Revenue is projected to climb from $37.4B to $102B by FY2027. If you buy the stock, that gap is what you are really buying.
32.5%
return on capital
Return on capital → profit generated from each dollar invested → Micron is making real money on the assets it already built.
56.0%
gross margin
Gross margin → sales minus production cost → more than half of each sales dollar stayed after manufacturing last quarter.
47.0x
trailing p/e
Trailing P/E → price versus past 12-month earnings → the stock still looks expensive on old earnings even after profit snapped back.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $11.9B (3% of capital)
- net profit margin 47.2% — keeps 47 cents of every dollar in revenue
- return on equity 34% — $0.34 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in MU 3 years ago → it's now worth $71,040.
The index would have given you $14,540.
source: institutional data · total return
What just happened
missed estimates
Micron put up $13.6B in quarterly revenue, up 57% vs. prior year, but the last reported EPS came in a cent light.
The business is still ripping. Revenue rose 57% vs. prior year and gross margin reached 56.0%, helped by AI infrastructure demand and stronger memory pricing.
$13.6B
revenue
$4.60
eps
56.0%
gross margin
the number that mattered
The key number was 56.0% gross margin because it tells you this was not just more volume. Pricing got better too.
-
since our december review, shares of micron technology have soared in price by nearly 60%.this impressive rise can be attributed to better-than-expected first-quarter results and a favorable near-term outlook. (micron is scheduled to report fiscal 2026 second-quarter results on march 18th, shortly after this issue went to print.) we think the Idaho-based company likely turned in another strong performance.
-
we’re encouraged by management’s near-term outlook, which ‘reflects substantial records across revenue, gross margin, earnings per share and free cash flow‘.what’s more, leadership has indicated that the company’s business performance should continue strengthening through fiscal 2026. (year ends august 27, 2026) the stage is set with solid results. boosted by the rising demand for all things artificial intelligence (ai), first-quarter sales of $13.6 billion exceeded consensus estimates of $13.0 billion and our estimate of $12.7 billion.
-
top-line results were impressive, jumping 57% higher than the year-ago quarter and 21% over the prior quarter.on an adjusted basis, the producer of dynamic random access memory (dram) and nand posted earnings of $4.78 per share.
-
micron is benefiting from the strong demand for ai infrastructure.in particular, there’s a growing need for micron’s high bandwidth memory (hbm) products as the expansion of data centers continues. too, a favorable pricing environment, established by a tighter supply-demand balance, continues to support micron’s performance.
-
the future looks bright.management expects second-quarter sales to land between $18.3 billion and $19.1 billion. and to post adjusted earnings per share between $8.22 and $8.62. with its industryleading hbm4 technology, micron is positioned to capitalized on the surging need for high-bandwidth memory, as the hbm market is projected to reach $100 billion by 2028. furthermore, strategic investments in global manufacturing facilities ought to enhance its ability to meet increasing demand. shares of micron are ranked to outperform the broader market averages in the year ahead (timeliness: 2).
source: company earnings report, 2026
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What could go wrong
Micron's problem is not subtle: 100% of the business sits inside memory and storage, so if pricing weakens before AI demand stays strong enough to offset it, both the story and the stock get hit at once.
med
memory pricing reversal
all $37.4B of revenue comes from memory and storage. there is no safer side business waiting in the corner. if pricing softens, revenue and margins get hit together.
a 50.5% net margin is the loudest sign that conditions are favorable right now. if pricing rolls over, that margin falls with it, and the valuation discussion changes fast.
med
HBM expectations getting ahead of reality
the market is leaning hard on the AI memory story. management tied HBM demand to guidance for $18.3B–$19.1B in sales and $8.22–$8.62 adjusted EPS. if that path slips, the premium story weakens before the fundamentals fully do.
this is what makes the stock tricky. you are not only buying good numbers. you are buying the belief that the good numbers last.
med
the stock is built for drawdowns
price stability is 20/100. that means the balance sheet can look reasonable while the stock still trades like it has anger issues. if you own it, you should expect sharp moves to be part of the package.
even if the business keeps improving, your path from here can still be rough enough to shake out investors who were only comfortable with the AI headline and not the memory-stock reality.
because every dollar of Micron's $37.4B revenue comes from memory and storage, the business does not have a defensive segment to absorb a pricing reset. that is why the june report matters so much.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next report expected in june
the stock has already heard the AI story. june is about proof. watch whether revenue and EPS keep tracking the pace implied by the latest beat and guidance.
trend
HBM demand staying strong
strong AI infrastructure demand is the cleanest reason this cycle could look less normal than the last one. if that demand cools, the stock loses the part of the story investors are paying up for.
risk
memory pricing discipline
pricing is the lever that moves almost everything here. when supply gets loose, margins usually follow it down. this is the simplest way to track whether the cycle is still helping or starting to hurt.
metric
whether margins stay near current highs
50.5% net margin is the number to keep in the back of your head. if revenue grows but margins slide hard, the market will start calling peak cycle before management does.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — in human-speak, analysts still expect above-average price performance over the next year.
risk profile
average
stability score 3 — the balance sheet is fine, but the stock still behaves like a cyclical chip name.
chart momentum
top 20%
technical score 2 — the tape has been strong, which usually helps until the next estimate reset says otherwise.
earnings predictability
5 / 100
expect surprises. this business does not deliver calm, utility-like earnings streams.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 1,266 buyers vs. 752 sellers in 4q2025. total institutional holdings: 0.9B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$245
$663
$389
current price
$454
target midpoint · +17% from current · 3-5yr high: $850 (+120% · 22% ann'l return)
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