Micron Technology, Inc.

(NASDAQ Global Select)
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Very Bullish +85

Micron (MU) Stock: Jim Cramer Says He’s “Never Seen Anything Like It”

Earnings report Financial outlook AI-generated analysis

📉 Micron stock pulled back 5% to roughly $1,036 after reaching an all-time high near $1,255, though analysts remain bullish.

🚀 D.A. Davidson analyst Gil Luria raised his price target to $3,000 from $2,100, implying the stock could nearly triple from current levels.

📅 Analysts expect the memory chip shortage to persist through 2027 and 2028 due to long-term supply deals with major buyers like Amazon and Microsoft.

💰 Micron reported fiscal Q4 revenue of $54.23 billion, representing a 379% year-over-year increase.

📈 Non-GAAP diluted earnings per share surged to $33.42 compared to just $3 a year earlier.

🔍 Gross margins expanded by 41 percentage points to reach an impressive 87% in the latest quarter.

💾 DRAM revenue grew 343% annually while NAND revenue jumped 526% to $14.10 billion.

🏆 Micron's HBM4 memory chip capacity is already sold out for 2026, indicating strong demand visibility.

📦 The company secured $32 billion in new supply commitments during the quarter, swelling its backlog to $150 billion.

💸 Management plans to spend $200 billion on capital expenditure to keep up with surging industry demand.

🌍 Micron gained market share in the global DRAM market, increasing from 22% to 24% between Q1 and Q2.

📊 Hedge fund interest is climbing with 184 funds holding stakes in Q2, up from 154 in Q1.

📉 The stock trades at a forward P/E of just 7, significantly below compute storage peers in the low to mid 20s.

⚠️ Heavy capital expenditure plans expose the company to classic industry overcapacity risk if demand cools.

📉 Rival SK Hynix trades at an even lower forward P/E of 5.4, suggesting the market may expect cyclical peak normalization.

Bullish Signals
  • D.A. Davidson analyst Gil Luria raised his price target to $3,000 from $2,100, implying the stock could nearly triple from current levels.
  • Micron reported fiscal Q4 revenue of $54.23 billion, a massive 379% year-over-year increase driven by strong demand.
  • Non-GAAP diluted earnings per share surged to $33.42 compared to just $3 a year earlier, highlighting exceptional profitability.
  • Gross margins expanded by 41 percentage points to reach 87%, demonstrating superior operational efficiency and pricing power.
  • DRAM revenue grew 343% annually while NAND revenue jumped 526% to $14.10 billion, reflecting robust growth across key segments.
  • Micron's HBM4 memory chip capacity is already sold out for 2026, securing future high-margin revenue streams.
  • The company secured $32 billion in new supply commitments during the quarter, swelling its backlog to $150 billion.
  • Micron gained market share in the global DRAM market, increasing from 22% to 24% between Q1 and Q2.
  • Hedge fund interest is climbing with 184 funds holding stakes in Q2, up sharply from 154 in Q1.
Risk Factors
  • The company's plan to spend $200 billion on capital expenditure exposes it to classic industry overcapacity risk if demand cools.
  • Micron trades at a forward P/E of just 7, which is significantly lower than compute storage peers in the low to mid 20s, potentially indicating market skepticism about sustainability.
Full Analysis
Micron Technology (MU) stock recently pulled back from its all-time high near $1,255 to roughly $1,036, yet Wall Street sentiment remains strongly bullish. Analysts are raising price targets and maintaining Buy ratings, citing a prolonged memory chip shortage expected to last through 2027 and 2028 driven by major tech buyers like Amazon, Microsoft, and Apple locking in long-term supply deals. The company reported exceptional fiscal Q4 fundamentals with revenue surging 379% year-over-year to $54.23 billion and non-GAAP diluted earnings per share jumping to $33.42 from just $3 a year prior. Gross margins expanded significantly to 87%, while DRAM revenue grew 343% and NAND revenue jumped 526%. Micron has already sold out its HBM4 memory chip capacity for 2026 and secured $32 billion in new supply commitments, swelling its backlog to $150 billion. To meet this robust demand, Micron plans to invest $200 billion in capital expenditure, a massive bet on the industry's continued shortage. While this strategy exposes the company to potential overcapacity risks if demand cools, it has also allowed Micron to gain market share in the global DRAM sector, moving from 22% to 24% between Q1 and Q2. Hedge fund interest is climbing with 184 funds holding stakes in Q2, reflecting strong institutional confidence despite recent technical pullbacks.