| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 48 | 22.1x | 17.8x | Around median | |
Growth | 99 | 167.0% | 7.1% | Top tier | |
Quality | 88 | 59.4% | 4.5% | Top tier | |
Safety | 94 | — | 2.6x | Top tier | |
Capital Return | 62 | 0.05% | 2.12% | Around median | |
Momentum | 94 | 550.9% | 2.9% | Top tier | |
Sentiment | 68 | 20 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Micron Technology produces memory and storage chips, and its business includes DRAM, HBM, NAND, and SSDs designed for data centers. The company's typical mix ranges between 75% and 80% DRAM and around 20% NAND, while its DRAM portfolio includes HBM products, high-capacity DIMMs, LPDRAM, and SOCAMM. The company benefits financially from selling memory across the data center, automotive, defense and aerospace, industrial, medical, and edge-device markets, with a technical focus on complex, high-performance products such as HBM4, Gen6 drives, and 245-terabyte QLC drives.
In Q3 of fiscal 2026, revenue reached $41.5 billion, gross profit was $35.1 billion, net income was $28.2 billion, and earnings per share were $24.67. These figures equate to a gross margin of approximately 84.6% and a net margin of approximately 68.0%, compared with revenue of $23.9 billion and net income of $13.8 billion in Q2 of fiscal 2026. The data center business generated $25 billion, or approximately 60.2% of quarterly revenue, and enterprise SSDs accounted for $5 billion of that business.
The future trajectory increasingly depends on non-cancelable strategic customer agreements based on take-or-pay arrangements. As of August 24, 2026, Micron had signed a total of 16 agreements, 14 of which include a minimum of approximately $100 billion in contracted revenue, while the 16 agreements are associated with more than $22 billion in deposits and financial commitments, including approximately $18 billion in cash. The company aims to cover around half of its revenue through these agreements, while pricing for many of them remains within floor-and-ceiling ranges and is renegotiated each quarter based on market conditions.
The analyst consensus rates MU shares as a “Buy,” with an average price target of $1547.71, within a wide range of $1100 to $2200. The average target is approximately 23.3% above the upper end of the 52-week range of $1255, but the significant disparity between the lowest and highest targets, together with the stock's annual range of $114.25 to $1255, reflects a high degree of uncertainty about the sustainability of the AI-driven memory cycle.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Micron generated revenue of $41.5 billion, gross profit of $35.1 billion, and net income of $28.2 billion in Q3 of fiscal 2026. Earnings per share were $24.67, with a calculated gross margin of approximately 84.6%. Data centers were the largest driver, generating $25 billion in revenue, including $5 billion from enterprise SSDs.
Micron announced on August 24, 2026, that it had signed 16 binding agreements, 14 of which represent approximately $100 billion in minimum contracted revenue. The agreements are non-cancelable and operate on a take-or-pay basis, and they generally extend for five years outside the automotive sector, with annual volume commitments. Total deposits and financial commitments exceeded $22 billion, including approximately $18 billion in cash, but the deposits are not prepaid revenue and are returned according to schedules weighted toward the second half of the contract term.
The company said during its Q3 fiscal 2026 earnings call that customer demand for HBM3E, HBM4, and subsequent products exceeds its supply capacity during 2027 and 2028. It explained that some agreements include lower volumes than customers requested due to limited supply, and that the constraints also include non-HBM DRAM. It also raised its estimate for the HBM market to more than $100 billion in 2027, after previously expecting it to reach that level in 2028.
Automated analysis for informational purposes only — not investment advice.
Micron raised its fiscal 2026 capital expenditure forecast to approximately $27 billion, including around $10 billion in Q4 of fiscal 2026. It will significantly increase spending in fiscal 2027, with more than half of the increase going toward construction at Idaho One, Tongluo, and Idaho Two. The company expects additional startup costs of between $100 million and $200 million per quarter during fiscal 2027, while the new capacity is not expected to begin making a meaningful contribution to bit production before calendar 2028.
Micron acknowledged during its Q3 fiscal 2026 earnings call that CXMT and YMTC have increased their capacity and market share, while the overwhelming majority of their output continues to be sold within China. On August 17, 2026, Micron shares rose 5.9% after the U.S. administration urged domestic companies to avoid Chinese memory chips. However, the stock fell 7% on August 24, 2026, following reports that Apple might be allowed to use Chinese suppliers, highlighting its rapid exposure to changes in trade policy.
Micron said during its Q3 fiscal 2026 earnings call that cash flows in the previous two quarters equaled what the company had generated throughout its history, and that it expects further growth in Q4 of fiscal 2026. The company increased its dividend by 30%, but identified share repurchases as the primary tool for returning capital. It intends to increase capital returns beginning December 9, 2026, with the pace determined by liquidity, investment, and operating conditions.
