Micron Technology, Inc. (MU) and SkyWater Technology, Inc. (SKYT) stand out in the semiconductor industry, each with distinctive business models and innovation approaches. Micron leads with large-scale memory and storage solutions, while SkyWater focuses on specialized semiconductor development and manufacturing services. Their market overlap and varied growth strategies make for a compelling comparison. Join me as we explore which company presents a more attractive opportunity for today’s investor.
Table of contents
Companies Overview
I will begin the comparison between Micron Technology and SkyWater Technology by providing an overview of these two companies and their main differences.
Micron Technology Overview
Micron Technology, Inc. is a global leader in designing, manufacturing, and selling memory and storage products. Founded in 1978 and headquartered in Boise, Idaho, Micron operates through four main segments covering DRAM, NAND, and NOR memory technologies. Its products serve diverse markets including cloud servers, enterprise, mobile devices, automotive, and industrial sectors, marketed through direct sales and distribution channels.
SkyWater Technology Overview
SkyWater Technology, Inc., founded in 2017 and based in Bloomington, Minnesota, specializes in semiconductor development and manufacturing services. It provides engineering support and manufacturing for silicon-based analog, mixed-signal, power discrete, MEMS, and rad-hard integrated circuits. SkyWater serves customers across aerospace, defense, automotive, bio-health, consumer, and industrial IoT industries, focusing on collaborative technology development.
Key similarities and differences
Both companies operate within the semiconductor industry and serve technology-driven markets, but their business models differ significantly. Micron focuses on memory and storage product manufacturing with a broad, global market reach and a large workforce of 48K employees. In contrast, SkyWater offers specialized semiconductor manufacturing and engineering services with a smaller workforce of 700+, targeting niche sectors like aerospace and defense through co-development partnerships.
Income Statement Comparison
Below is a comparison of key income statement metrics for Micron Technology, Inc. and SkyWater Technology, Inc. for their most recent fiscal years.
| Metric | Micron Technology, Inc. (MU) | SkyWater Technology, Inc. (SKYT) |
|---|---|---|
| Market Cap | 373B | 1.46B |
| Revenue | 37.4B | 342M |
| EBITDA | 18.5B | 25.3M |
| EBIT | 10.1B | 6.6M |
| Net Income | 8.54B | -6.79M |
| EPS | 7.65 | -0.14 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Micron Technology, Inc.
Micron Technology’s revenue and net income have shown a robust upward trend from 2021 to 2025, with revenue reaching $37.4B and net income $8.54B in 2025. Margins improved significantly, highlighted by a gross margin near 40% and a net margin of 22.8%. The latest fiscal year exhibited strong growth, with revenue up nearly 49% and net income surging over sixfold, signaling improved profitability and operational efficiency.
SkyWater Technology, Inc.
SkyWater Technology’s revenue grew steadily over 2020-2024, reaching $342M in 2024, while net income remained negative, at -$6.8M in 2024. Margins show mixed trends: the gross margin was favorable at 20.3%, but the net margin stayed unfavorable at -2%. The most recent year showed notable improvement in EBIT and net margin growth, indicating progress toward operational profitability despite continued net losses.
Which one has the stronger fundamentals?
Micron Technology demonstrates stronger fundamentals with consistent revenue and net income growth, favorable margins across all key indicators, and solid profitability. SkyWater, while showing revenue expansion and improving margins, still reports net losses and a much smaller scale of operations. Micron’s financial metrics reflect greater stability and profitability, whereas SkyWater remains in a developmental phase with improving but less established income statement fundamentals.
Financial Ratios Comparison
The following table presents a selection of key financial ratios for Micron Technology, Inc. and SkyWater Technology, Inc., based on their most recent fiscal year data.
| Ratios | Micron Technology, Inc. (MU) | SkyWater Technology, Inc. (SKYT) |
|---|---|---|
| ROE | 15.8% | -11.8% |
| ROIC | 12.1% | 3.4% |
| P/E | 15.9 | -100.3 |
| P/B | 2.51 | 11.82 |
| Current Ratio | 2.52 | 0.86 |
| Quick Ratio | 1.79 | 0.76 |
| D/E (Debt-to-Equity) | 0.28 | 1.33 |
| Debt-to-Assets | 18.5% | 24.5% |
| Interest Coverage | 20.7 | 0.74 |
| Asset Turnover | 0.45 | 1.09 |
| Fixed Asset Turnover | 0.79 | 2.07 |
| Payout ratio | 6.1% | 0% |
| Dividend yield | 0.38% | 0% |
Interpretation of the Ratios
Micron Technology, Inc.
Micron Technology exhibits mostly favorable financial ratios, including strong net margin at 22.84% and a robust return on equity of 15.76%, indicating effective profitability. However, the weighted average cost of capital at 10.52% and asset turnover ratios are less favorable, suggesting efficiency challenges. The company pays dividends with a modest yield of 0.38%, reflecting a cautious payout strategy supported by stable free cash flow, though the yield is relatively low.
SkyWater Technology, Inc.
SkyWater Technology shows predominantly unfavorable ratios, such as a negative net margin of -1.98% and return on equity of -11.79%, signaling profitability struggles. Its liquidity ratios are weak, with a current ratio of 0.86 and high debt-to-equity at 1.33, pointing to financial risk. The company does not pay dividends, likely due to negative earnings and a focus on reinvestment and growth rather than shareholder returns.
Which one has the best ratios?
Micron Technology clearly holds the advantage with a majority of favorable ratios and better profitability and liquidity metrics. SkyWater Technology’s ratios reflect operational and financial challenges, with more unfavorable indicators, weaker returns, and no dividend distributions. Thus, Micron’s financial profile appears more solid and balanced in comparison.
Strategic Positioning
This section compares the strategic positioning of Micron Technology, Inc. and SkyWater Technology, Inc., focusing on Market position, Key segments, and Exposure to technological disruption:
Micron Technology, Inc.
- Leading semiconductor memory manufacturer with large market cap and global presence; faces competitive pressure.
- Diverse revenue streams: DRAM, NAND, embedded, mobile, and storage products across cloud, automotive, and consumer sectors.
- Operates in a fast-evolving memory tech market; exposure to rapid innovation and product cycle changes.
SkyWater Technology, Inc.
- Smaller semiconductor manufacturer specializing in development and manufacturing services; niche market focus.
- Revenue mainly from advanced technology services and wafer manufacturing for aerospace, defense, automotive, and IoT sectors.
- Focuses on co-creating technologies with customers, less direct exposure to mass market product disruption.
Micron Technology, Inc. vs SkyWater Technology, Inc. Positioning
Micron’s approach is highly diversified across multiple memory and storage product lines, benefiting from scale but exposed to intense competition. SkyWater concentrates on semiconductor manufacturing services and niche engineering support, which may limit scale but focus on specialized customer collaboration.
Which has the best competitive advantage?
Both companies are currently shedding value relative to their cost of capital; however, Micron shows a slightly favorable moat with growing profitability, while SkyWater’s profitability improves but remains slightly unfavorable in value creation.
Stock Comparison
The stock price chart illustrates significant bullish momentum for both Micron Technology, Inc. (MU) and SkyWater Technology, Inc. (SKYT) over the past 12 months, with MU showing stronger acceleration and higher volatility compared to SKYT.
Trend Analysis
Micron Technology, Inc. (MU) experienced a robust bullish trend over the past year with a 287.62% price increase, marked by accelerating gains and a high volatility level with a 57.56 standard deviation. The stock reached a peak of 345.09 and a low of 64.72.
SkyWater Technology, Inc. (SKYT) also showed a bullish trend with a 220.08% price rise over the same period, accompanied by accelerating momentum but with much lower volatility at a 4.34 standard deviation. The highest and lowest prices were 30.44 and 6.1, respectively.
Comparing the two, MU delivered the highest market performance with a larger percentage gain and stronger price acceleration, despite greater price fluctuations versus SKYT’s more stable but still substantial growth.
Target Prices
Here is the consensus target price outlook from verified analysts for these semiconductor companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Micron Technology, Inc. | 450 | 190 | 328.22 |
| SkyWater Technology, Inc. | 25 | 25 | 25 |
Analysts expect Micron’s stock to trade near $328, close to its current price of $333.35, suggesting limited upside. SkyWater’s target price is set at $25, below its present $30.44, indicating potential downside risk.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Micron Technology, Inc. and SkyWater Technology, Inc.:
Rating Comparison
MU Rating
- Rating: B, considered Very Favorable overall.
- Discounted Cash Flow Score: 1, indicating a Very Unfavorable valuation view.
- ROE Score: 4, rated Favorable for profit generation efficiency.
- ROA Score: 5, rated Very Favorable for asset utilization effectiveness.
- Debt To Equity Score: 3, rated Moderate for financial risk level.
- Overall Score: 3, indicating a Moderate overall financial standing.
SKYT Rating
- Rating: B+, considered Very Favorable overall.
- Discounted Cash Flow Score: 1, indicating a Very Unfavorable valuation view.
- ROE Score: 5, rated Very Favorable for profit generation efficiency.
- ROA Score: 5, rated Very Favorable for asset utilization effectiveness.
- Debt To Equity Score: 1, rated Very Unfavorable for financial risk level.
- Overall Score: 3, indicating a Moderate overall financial standing.
Which one is the best rated?
SkyWater Technology holds a slightly better rating overall with a B+ compared to Micron’s B. It also scores higher on ROE while both have equal overall and ROA scores. However, SkyWater’s debt-to-equity score is notably weaker.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for the two companies:
MU Scores
- Altman Z-Score: 10.5, in safe zone indicating low bankruptcy risk.
- Piotroski Score: 7, considered strong financial health.
SKYT Scores
- Altman Z-Score: 1.63, in distress zone indicating high bankruptcy risk.
- Piotroski Score: 5, considered average financial health.
Which company has the best scores?
Based on the data provided, MU has significantly better scores with a safe zone Altman Z-Score and a strong Piotroski Score. SKYT scores indicate financial distress and average strength, showing a weaker position comparatively.
Grades Comparison
The grades from reputable financial institutions for Micron Technology, Inc. and SkyWater Technology, Inc. are as follows:
Micron Technology, Inc. Grades
This table summarizes recent grades assigned by established grading companies for Micron Technology, Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Keybanc | Maintain | Overweight | 2026-01-13 |
| B of A Securities | Maintain | Buy | 2026-01-13 |
| Lynx Global | Maintain | Buy | 2026-01-12 |
| Mizuho | Maintain | Outperform | 2026-01-09 |
| UBS | Maintain | Buy | 2026-01-07 |
| Piper Sandler | Maintain | Overweight | 2026-01-07 |
| Piper Sandler | Maintain | Overweight | 2025-12-18 |
| Barclays | Maintain | Overweight | 2025-12-18 |
| Keybanc | Maintain | Overweight | 2025-12-18 |
| Wolfe Research | Maintain | Outperform | 2025-12-18 |
Overall, Micron Technology consistently receives positive grades, predominantly “Buy,” “Overweight,” and “Outperform,” indicating a strong consensus for holding or acquiring the stock.
SkyWater Technology, Inc. Grades
This table shows recent grades from reliable grading companies for SkyWater Technology, Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Needham | Maintain | Buy | 2025-11-06 |
| Piper Sandler | Maintain | Overweight | 2025-11-06 |
| TD Cowen | Maintain | Buy | 2025-11-06 |
| Needham | Maintain | Buy | 2025-08-07 |
| Needham | Maintain | Buy | 2025-05-08 |
| Needham | Maintain | Buy | 2025-02-27 |
| Needham | Maintain | Buy | 2024-11-11 |
| Piper Sandler | Maintain | Overweight | 2024-10-25 |
| Piper Sandler | Maintain | Overweight | 2024-08-08 |
| Needham | Maintain | Buy | 2024-05-09 |
SkyWater Technology consistently earns “Buy” and “Overweight” ratings, showing a steady positive outlook from analysts over an extended period.
Which company has the best grades?
Micron Technology, Inc. has more frequent and recent ratings with a strong presence of “Outperform” and “Overweight” grades, slightly edging SkyWater Technology, Inc., which maintains a positive but less varied rating profile. Investors might interpret Micron’s broader analyst coverage and more diverse positive grades as a sign of higher confidence in its potential.
Strengths and Weaknesses
Here is a comparative overview of the strengths and weaknesses of Micron Technology, Inc. (MU) and SkyWater Technology, Inc. (SKYT) based on their latest financial and operational data:
| Criterion | Micron Technology, Inc. (MU) | SkyWater Technology, Inc. (SKYT) |
|---|---|---|
| Diversification | High: strong product mix with DRAM and NAND segments generating $28.6B and $8.5B in 2025, respectively. | Moderate: focused on Advanced Technology and Wafer Services with less diversification, revenues around $268M in 2024. |
| Profitability | Favorable: Net margin 22.8%, ROIC 12.1%, ROE 15.8%, showing efficient capital use and profitability. | Unfavorable: Negative net margin (-2.0%), ROE (-11.8%) with ROIC at 3.4%, indicating current profitability challenges. |
| Innovation | Slightly favorable moat with growing ROIC trend (+8.2%), reflecting improving competitive positioning. | Slightly unfavorable moat despite strong ROIC growth (+170%), overall value destruction persists. |
| Global presence | Strong: global semiconductor market presence with diversified end markets. | Limited: more niche player focused on specialized manufacturing services, smaller footprint. |
| Market Share | Large: Leading memory chip supplier with extensive market share in DRAM and NAND. | Small: Niche market player in semiconductor manufacturing services. |
Key takeaways: Micron Technology demonstrates solid profitability, diversification, and a slightly favorable competitive moat with growing returns. SkyWater, while showing improving ROIC trends, faces profitability hurdles and maintains a smaller, more specialized market presence. Investors should weigh Micron’s stability against SkyWater’s growth potential and current risks.
Risk Analysis
Below is a comparative table highlighting key risks for Micron Technology, Inc. (MU) and SkyWater Technology, Inc. (SKYT) based on the most recent data available:
| Metric | Micron Technology, Inc. (MU) | SkyWater Technology, Inc. (SKYT) |
|---|---|---|
| Market Risk | Beta 1.5, moderate market volatility exposure | Beta 3.5, highly sensitive to market swings |
| Debt level | Low debt-to-equity 0.28, financially stable | High debt-to-equity 1.33, elevated financial risk |
| Regulatory Risk | Moderate, semiconductor industry regulations | Moderate, aerospace and defense customer base |
| Operational Risk | Large scale with 48K employees, complexity risk | Smaller scale with 700+ employees, operational scaling risk |
| Environmental Risk | Standard industry compliance, no major issues | Emerging environmental management, potential risks |
| Geopolitical Risk | Exposure to global supply chain disruptions | High exposure due to defense and aerospace focus |
Micron faces moderate market and operational risks but benefits from strong financial stability and lower debt. SkyWater shows higher market and financial risks, particularly due to elevated debt and higher beta, increasing volatility and default risk. Investors should weigh SkyWater’s growth potential against its financial distress signals, while Micron offers a more balanced risk profile.
Which Stock to Choose?
Micron Technology, Inc. (MU) shows a strong positive income evolution with a 48.85% revenue growth in 2025, favorable profitability ratios including a 22.84% net margin, and manageable debt levels (net debt to EBITDA at 0.30). Its financial ratios are largely favorable, supported by a very favorable rating and a slightly favorable moat status indicating growing profitability but no strong competitive moat yet.
SkyWater Technology, Inc. (SKYT) presents a favorable income growth pattern overall but with a negative net margin of -1.98% and unfavorable return ratios in 2024. Its financial ratios are mostly unfavorable, burdened by high debt levels (debt-to-equity ratio 1.33) and a slightly unfavorable moat reflecting value destruction despite improving profitability. The company holds a very favorable rating but faces financial stability challenges.
For investors focused on stable profitability and financial strength, MU’s consistent income growth and favorable ratios might appear more appealing, while those with a tolerance for higher risk and an eye on rapid growth potential could interpret SKYT’s improving trends as promising despite current financial weaknesses.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Micron Technology, Inc. and SkyWater Technology, Inc. to enhance your investment decisions:
