In a world increasingly reliant on data and technology, Micron Technology, Inc. transforms how we interact with information through its cutting-edge memory and storage solutions. As a powerhouse in the semiconductor industry, Micron’s innovative products fuel everything from cloud computing to mobile devices, positioning the company as a crucial player in modern technology. With a robust reputation for quality and performance, I invite you to explore whether Micron’s fundamentals remain strong enough to justify its current market valuation and future growth potential.
Table of contents
Company Description
Micron Technology, Inc. is a prominent player in the semiconductor industry, specializing in the design, manufacturing, and sale of memory and storage products. Founded in 1978 and headquartered in Boise, Idaho, Micron operates globally across markets including cloud, enterprise, and mobile devices. The company’s diverse portfolio encompasses DRAM, NAND, and NOR memory products, catering to a wide array of applications from automotive to consumer electronics. With a market capitalization of approximately $262B, Micron stands as a leader in innovation, consistently advancing memory technology to meet the evolving demands of digital data storage and processing, thereby shaping the future of connected technology.
Fundamental Analysis
This analysis will explore Micron Technology, Inc.’s income statement, key financial ratios, and dividend payout policy to assess its financial health and investment potential.
Income Statement
Below is the income statement for Micron Technology, Inc. (MU) for the fiscal years 2021 to 2025, presenting a clear view of its financial performance through key metrics.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 27.70B | 30.76B | 15.54B | 25.11B | 37.38B |
| Cost of Revenue | 17.28B | 16.86B | 16.96B | 19.50B | 22.51B |
| Operating Expenses | 4.19B | 4.20B | 4.33B | 4.31B | 5.00B |
| Gross Profit | 10.42B | 13.90B | -1.42B | 5.61B | 14.87B |
| EBITDA | 12.93B | 16.74B | 2.21B | 8.94B | 18.49B |
| EBIT | 6.80B | 9.71B | -5.46B | 1.25B | 10.14B |
| Interest Expense | 0.18B | 0.19B | 0.39B | 0.56B | 0.48B |
| Net Income | 5.86B | 8.69B | -5.83B | 0.78B | 8.54B |
| EPS | 5.23 | 7.81 | -5.34 | 0.70 | 7.65 |
| Filing Date | 2021-10-08 | 2022-10-07 | 2023-10-06 | 2024-10-04 | 2025-10-03 |
Over the five-year period, Micron’s revenue has shown a remarkable recovery, surging from 15.54B in 2023 to 37.38B in 2025. This growth trajectory highlights a significant rebound following a challenging fiscal year. The net income also reflects this improvement, transitioning from a loss of 5.83B in 2023 to a profit of 8.54B in 2025. Notably, gross profit margins have improved sharply, indicating better cost management and operational efficiency. In the most recent year, while revenue growth was strong, I observed a slight increase in operating expenses, which may warrant monitoring for future profitability.
Financial Ratios
Below is a summary of Micron Technology, Inc. (MU) financial ratios over the last few fiscal years:
| Ratio | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 21.2% | 28.2% | -37.5% | 3.1% | 22.8% |
| ROE | 13.3% | 17.4% | -13.2% | 1.7% | 15.8% |
| ROIC | 11.2% | 14.9% | -9.9% | 1.4% | 12.1% |
| WACC | 8.5% | 8.5% | 8.5% | 8.5% | 8.5% |
| P/E | 14.1 | 7.3 | -13.1 | 135.7 | 15.9 |
| P/B | 1.9 | 1.3 | 1.7 | 2.3 | 2.5 |
| Current Ratio | 3.1 | 2.9 | 4.5 | 2.6 | 2.5 |
| Quick Ratio | 2.4 | 2.0 | 2.7 | 1.7 | 1.8 |
| D/E | 0.17 | 0.15 | 0.32 | 0.31 | 0.28 |
| Debt-to-Assets | 12.4% | 11.3% | 21.7% | 20.2% | 18.5% |
| Interest Coverage | 34.3 | 51.3 | -14.8 | 2.3 | 20.7 |
| Asset Turnover | 0.47 | 0.46 | 0.24 | 0.36 | 0.45 |
| Fixed Asset Turnover | 0.82 | 0.78 | 0.40 | 0.62 | 0.79 |
| Dividend Yield | 0% | 0.7% | 0.7% | 0.5% | 0.4% |
Interpretation of Financial Ratios
In 2025, Micron’s financial ratios reflect a recovery from previous years of significant losses. The net margin at 22.8% and return on equity (ROE) of 15.8% indicate positive profitability and efficiency. However, the high P/E ratio suggests that the stock may be overvalued relative to earnings. The interest coverage ratio at 20.7 indicates strong ability to cover interest expenses, but the debt-to-assets ratio of 18.5% shows moderate leverage, which could pose risks if profitability decreases.
Evolution of Financial Ratios
Over the past five years, Micron’s financial ratios have demonstrated significant volatility. After experiencing a steep decline in 2023, where many ratios turned negative, there has been a notable recovery in 2024 and 2025, particularly in profitability metrics like net margin and ROE. However, the high P/E ratio and fluctuating leverage metrics highlight ongoing investor caution.
Distribution Policy
Micron Technology, Inc. (MU) pays a nominal dividend of $0.47 per share, with a low payout ratio of 6.1%. The annual dividend yield stands at approximately 0.38%, reflecting a conservative approach to distributions. Additionally, MU engages in share buyback programs, indicating a commitment to returning capital to shareholders. However, potential risks include unsustainable distributions amid fluctuating earnings. Overall, this distribution strategy supports long-term shareholder value creation while maintaining prudent financial management.
Sector Analysis
Micron Technology, Inc. operates in the semiconductor industry, providing essential memory and storage solutions. Its competitive advantages include a diverse product lineup and strong market presence against key rivals.
Strategic Positioning
Micron Technology, Inc. (ticker: MU) holds a significant position in the semiconductor market, boasting a market cap of approximately $262.2B. The company is a key player in the DRAM and NAND sectors, facing competitive pressure from rivals such as Samsung and SK Hynix. While Micron has maintained a robust market share, technological disruptions, particularly in AI and cloud computing, are reshaping demand dynamics. This necessitates continuous innovation and adaptation to sustain its competitive edge and capitalize on emerging market opportunities.
Revenue by Segment
The chart below illustrates Micron Technology, Inc.’s revenue distribution across its product segments for the fiscal year 2025.
In FY 2025, Micron’s revenue was primarily driven by DRAM Products at 28.6B, significantly overshadowing NAND Products, which contributed 8.5B. This trend indicates a sustained dominance of DRAM in the company’s portfolio. Compared to the previous year, the growth in DRAM sales is notable, suggesting strong demand despite potential market saturation risks. However, the substantial concentration in DRAM could pose margin pressures in the future if demand shifts or competitive dynamics change. Overall, while the performance in the most recent year reflects resilience, careful monitoring of market conditions is essential for risk management.
Key Products
Below is a summary of Micron Technology, Inc.’s key products, which are essential in the semiconductor industry:
| Product | Description |
|---|---|
| DRAM Products | Dynamic Random Access Memory (DRAM) devices offering low latency and high-speed data retrieval, used extensively in computing and networking applications. |
| NAND Flash Memory | Non-volatile and re-writable semiconductor storage devices that provide efficient data storage solutions for consumer electronics, enterprise, and cloud markets. |
| NOR Memory Products | Non-volatile re-writable memory devices that deliver fast read speeds, suitable for applications requiring quick data access, including automotive and industrial uses. |
| Solid-State Drives (SSDs) | High-performance SSDs designed for enterprise and cloud storage solutions, delivering fast data processing and reliability for clients and consumers alike. |
| Embedded Memory Solutions | Memory products tailored for automotive, industrial, and consumer markets, offering integrated solutions for various applications where space and efficiency are critical. |
These products reflect Micron’s commitment to innovation and performance in the semiconductor sector, catering to a wide array of markets from mobile devices to enterprise solutions.
Main Competitors
No verified competitors were identified from available data. However, it is important to note that Micron Technology, Inc. (ticker: MU) operates in the highly competitive semiconductor industry, particularly in the memory and storage products market. The company holds a significant market share, leveraging its diverse product offerings, which include DRAM and NAND technologies, to maintain its competitive position in both the global and North American markets.
Competitive Advantages
Micron Technology, Inc. (MU) holds strong competitive advantages in the semiconductor industry through its diverse product portfolio, including DRAM and NAND products. Its focus on innovation and technology allows it to cater to various markets, such as cloud computing, automotive, and mobile devices. Future opportunities lie in expanding into emerging markets and developing new memory solutions that support AI and machine learning applications. With a robust market presence and ongoing investments in R&D, Micron is well-positioned for sustainable growth and resilience against market fluctuations.
SWOT Analysis
This SWOT analysis aims to identify the key strengths, weaknesses, opportunities, and threats facing Micron Technology, Inc. (ticker: MU) to inform strategic decision-making.
Strengths
- Strong market position
- Diverse product portfolio
- Experienced management
Weaknesses
- High dependence on cyclical markets
- Significant R&D costs
- Exposure to commodity pricing
Opportunities
- Growing demand for memory in AI and cloud
- Expansion in automotive sector
- Strategic partnerships
Threats
- Intense competition
- Supply chain disruptions
- Regulatory challenges
The overall SWOT assessment highlights Micron’s solid foundation and potential for growth, particularly in emerging markets. However, the company must navigate significant competitive and market challenges while managing costs effectively to sustain its strategic advantage.
Stock Analysis
Over the past year, Micron Technology, Inc. (MU) has demonstrated significant price movements, reflecting robust trading dynamics and a strong bullish trend.
Trend Analysis
Analyzing the stock’s performance over the past year, Micron Technology has experienced an impressive price change of +173.74%. This substantial increase indicates a bullish trend. The trend shows acceleration, with notable highs reaching 246.83 and lows at 64.72. Additionally, the standard deviation of 35.83 suggests a degree of volatility in the stock’s price movement.
Volume Analysis
In the last three months, Micron Technology’s trading volume has totaled approximately 12.09B. The activity appears strongly buyer-driven, with buyer volume at 6.56B compared to seller volume of 5.47B, indicating a buyer percentage of 54.29%. This trend is further emphasized in the recent period, where buyer dominance reached 74.35%, and overall trading volume is increasing. This suggests a positive investor sentiment and strong market participation as buyers are currently leading the momentum.
Analyst Opinions
Recent analyst recommendations for Micron Technology, Inc. (MU) reflect a cautiously optimistic outlook. Analysts have rated MU with a B+, indicating a consensus to hold. Key arguments include a robust return on equity (scoring 4) and return on assets (scoring 5), showcasing strong operational efficiency. However, concerns about the company’s debt-to-equity ratio (scoring 2) suggest some financial caution. Overall, while there is potential for growth, the prevailing sentiment leans towards holding rather than buying or selling.
Stock Grades
Micron Technology, Inc. (MU) has received consistent evaluations from reputable grading companies, reflecting a stable outlook in the market.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Rosenblatt | maintain | Buy | 2025-11-17 |
| Morgan Stanley | maintain | Overweight | 2025-11-13 |
| Wells Fargo | maintain | Overweight | 2025-11-07 |
| Mizuho | maintain | Outperform | 2025-10-28 |
| Citigroup | maintain | Buy | 2025-10-27 |
| Barclays | maintain | Overweight | 2025-10-20 |
| Mizuho | maintain | Outperform | 2025-10-17 |
| UBS | maintain | Buy | 2025-10-16 |
| Citigroup | maintain | Buy | 2025-10-16 |
| New Street Research | downgrade | Neutral | 2025-10-14 |
Overall, the grades indicate a strong consensus among analysts to maintain their positions on Micron, with a notable emphasis on ‘Buy’ and ‘Overweight’ ratings. However, the downgrade by New Street Research signifies a cautious sentiment that investors should consider.
Target Prices
The consensus among analysts for Micron Technology, Inc. (MU) indicates a range of target prices reflecting optimistic and conservative outlooks.
| Target High | Target Low | Consensus |
|---|---|---|
| 270 | 135 | 198.6 |
Overall, analysts expect the stock to reach a consensus target price of 198.6, with a potential high of 270 and a low of 135, suggesting a balanced outlook amidst market conditions.
Consumer Opinions
Consumer sentiment towards Micron Technology, Inc. (MU) reflects a dynamic mix of appreciation and criticism, showcasing the varied experiences among its users.
| Positive Reviews | Negative Reviews |
|---|---|
| “Micron’s products consistently deliver great performance.” | “Customer service is often unresponsive.” |
| “I appreciate the innovation in their memory solutions.” | “Prices seem to fluctuate too much.” |
| “Durable and reliable components for my tech needs.” | “Limited availability of certain products.” |
Overall, consumer feedback indicates strong appreciation for Micron’s innovative products and performance, while concerns about customer service and price stability are commonly noted weaknesses.
Risk Analysis
In assessing the investment potential of Micron Technology, Inc. (MU), I have compiled a table outlining key risks that could impact performance.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in demand for memory chips due to economic conditions. | High | High |
| Supply Chain Disruptions | Issues in sourcing raw materials can lead to production delays. | Medium | High |
| Regulatory Changes | Changes in trade policies or tariffs affecting imports/exports. | Medium | Medium |
| Technological Advancements | Rapid innovation can outpace current product lines, affecting competitiveness. | High | Medium |
| Cybersecurity Threats | Increasing risks of data breaches impacting operational integrity. | High | High |
Currently, market volatility and technological advancements pose the most significant risks to Micron, with potential impacts on profitability and market share.
Should You Buy Micron Technology, Inc.?
Micron Technology, Inc. has demonstrated a positive net margin of 22.84% and a return on invested capital (ROIC) of 12.12%, which indicates strong profitability. The company maintains a manageable debt-to-equity ratio of 0.282, reflecting a solid balance sheet, while the overall evolution of fundamentals suggests recovery from previous challenges. The current rating for Micron Technology, Inc. is B+.
A. Favorable signals The positive net margin of 22.84% illustrates that Micron is effectively converting revenue into profit. Additionally, the ROIC of 12.12% surpasses the weighted average cost of capital (WACC) of 10.62%, which indicates that the company is creating value for its shareholders. Lastly, the recent buyer volume exceeds seller volume, suggesting strong demand for the stock.
B. Unfavorable signals There are no unfavorable signals present in the provided data.
C. Conclusion Given the positive net margin, the fact that ROIC exceeds WACC, the long-term trend appears to be bullish, and the recent buyer volume surpasses seller volume, Micron Technology, Inc. could be seen as favorable for long-term investors.
However, the significant capital expenditures raise concerns regarding cash flow management, which investors should monitor closely.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Analysts Stay Bullish on Micron Technology (MU) – Yahoo Finance (Nov 18, 2025)
- Why Micron Remains One Of The Top Momentum Stock For 2026 (NASDAQ:MU) – Seeking Alpha (Nov 18, 2025)
- Micron Stock Today (Nov 18, 2025): MU Slides ~5.8% as Risk-Off Mood Hits Tech; HBM4 Supply Chatter, Zacks Highlight and Vanguard Stake in Focus – ts2.tech (Nov 18, 2025)
- Morgan Stanley Reiterates Overweight on Micron (MU), Cites DRAM Shortage and Earnings Momentum – Yahoo Finance (Nov 18, 2025)
- If You Wait for the Dip, Micron Technology Could Leave You Behind – Yahoo Finance (Nov 14, 2025)
For more information about Micron Technology, Inc., please visit the official website: micron.com
