The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 54 | 20.7x | 20.8x | Around median | |
Growth | 99 | 167.0% | 6.1% | Top tier | |
Quality | 88 | 74.9% | 6.6% | Top tier | |
Safety | 94 | — | 0.7x | Top tier | |
Capital Return | 23 | 0.05% | 2.02% | Bottom tier | |
Momentum | 93 | 854.7% | 4.1% | Top tier | |
Sentiment | 65 | 20 | 3 | Around median |
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, Inc. (MU) is a memory and storage company listed on NASDAQ, with its business centered on DRAM and NAND products and high-performance memory solutions such as HBM, as well as data center SSD drives. Management explained on the June 24, 2026 call that the business mix typically leans 75% to 80% toward DRAM and about 20% toward NAND, with a growing presence in HBM, LPDRAM, SOCAMM, and enterprise SSDs. The company generates revenue by selling memory chips and storage products to customers in data centers, artificial intelligence, phones, computers, automotive, and industry, and it has also begun shifting a larger portion of demand to multi-year strategic customer agreements with purchase-or-pay commitments.
The latest EDGAR figures available for 2026 Q2 show revenue of $23.9 billion, gross profit of $17.8 billion, net income of $13.8 billion, and earnings per share of 12.07. This implies a gross margin of about 74.5% and a net income margin of about 57.7% in that quarter, levels that reflect an extremely strong memory cycle compared with TTM revenue of $54.9 billion and TTM net income of $22.5 billion. In the fiscal third-quarter 2026 call, management provided additional important operating details, including that data center revenue reached $25 billion in that quarter, and that enterprise SSDs alone generated $5 billion within that figure.
The most prominent driver right now is the shift of memory into a strategic component in artificial intelligence architecture, as Micron said demand for HBM3E and HBM4, and even ahead of HBM4E qualifications, exceeds its supply capacity in 2027 and 2028. Management also said the tightness in the HBM market may extend beyond 2027, and that the HBM total addressable market could easily exceed $100 billion in 2027, after the previous view pointed to surpassing that level in 2028. This places Micron at the center of a long cycle of capital spending and demand, but it also increases the stock’s sensitivity to expectations for capacity and spending.
The analyst consensus on MU is Buy, and the average price target is $1569.09, with the highest target at $2200 and the lowest target at $1100. Compared with the live price data shown outside this text, the stock trades below the average analyst target, while no official P/E ratio appears in the data despite TTM earnings per share of 19.696. The valuation reflects optimism about the HBM and data center cycle, but it is sensitive to rising capital spending and start-up costs for new fabs.
Figures in the text are as of 2026-07-07; the live price is shown at the top of the page.
The main difference is that management now describes memory as a strategic component in AI data centers, not merely a traditional cyclical commodity. In the June 24, 2026 call, Micron said demand for HBM3E and HBM4 exceeds its supply capacity in 2027 and 2028. The company also raised its view of the HBM market, as it expects its size to exceed $100 billion in 2027 instead of 2028 as was previously indicated. This demand also extends to non-HBM DRAM and NAND, which explains management’s emphasis that shipment growth has become constrained by supply, not demand.
These agreements are important because they shift part of Micron’s business model from selling memory in a volatile spot market to multi-year commitments. As of the date of the call, the company had signed 16 agreements that include more than $22 billion of cash and financial commitments, including approximately $18 billion in cash. Management described these contracts as take-or-pay and non-cancelable, with pricing ranges that set a ceiling and a floor for pricing. The stated goal is for SCAs to cover about half of the company’s revenue, which could increase visibility into future revenue compared with previous memory cycles.
In 2026 Q2, Micron recorded revenue of $23.9 billion and gross profit of $17.8 billion. Net income reached $13.8 billion and earnings per share were 12.07 in that quarter. These figures imply a gross margin of about 74.5% and a net income margin of about 57.7%. On a TTM basis, revenue was $54.9 billion, net income was $22.5 billion, and earnings per share were 19.696.
Automated analysis for informational purposes only — not investment advice.
No, management explained that data center strength includes HBM, non-HBM DRAM, NAND, and SSD products. In the fiscal third quarter of 2026, the company said data center revenue reached $25 billion, and that enterprise SSDs generated $5 billion within that figure. Micron also mentioned that it leads in QLC, was the first company to launch Gen6 drives and ramp them in volume, and leads in high-capacity 245 TB drives. In addition, the company sees an opportunity in LPDRAM and SOCAMM to reduce power consumption and improve performance in servers linked to agentic artificial intelligence.
The biggest execution risks relate to increasing production capacity and capital spending at a time when demand is much higher than supply. Micron raised capital spending for fiscal 2026 to about $27 billion, and said it will spend about $10 billion in the fourth quarter and then increase spending in 2027. Management also said most 2027 spending will be for construction, meaning new greenfield capacity will not begin making a real contribution to bits until 2028. According to CFO Mark Murphy, start-up costs in 2027 may add about $100 million to $200 million per quarter compared with prior run rates.
The insider data in the inputs carry a strong_sell signal, and this is a factor that should be monitored because it comes alongside strong improvement in demand fundamentals. Over the last three months, net insider activity was negative $168.0 million. The data also show 0 purchases versus 151 sales, with the latest transaction dated July 1, 2026. This does not negate the strength of demand for HBM or the SCA figures, but it represents a caution point separate from operating performance.