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 | Verdict |
|---|---|---|---|---|---|
Valuation | 37 | 43.8x | 20.3x | Near average | |
Growth | 89 | 85.5% | 5.6% | Above average | |
Quality | 65 | 43.6% | 7.6% | Near average | |
Safety | 81 | -0.4x | 0.4x | Above average | |
Capital Return | 45 | 0.05% | 2.15% | Near average | |
Momentum | 87 | — | — | Above average | |
Sentiment | 69 | — | — | Above average |
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. (ticker: MU) is one of the world's leading companies in the design and manufacture of advanced memory and storage solutions. Its operations focus primarily on providing Dynamic Random-Access Memory (DRAM), NAND Flash memory, and High Bandwidth Memory (HBM) dedicated to data centers, smart devices, automotive, and industrial systems. The company generates its revenue by selling these advanced technological solutions to tech giants, original equipment manufacturers (OEMs), and cloud service providers worldwide, capitalizing on the massive boom and growing demand for artificial intelligence applications.
During the second quarter of fiscal year 2026, Micron achieved exceptional financial results that significantly exceeded expectations. Total revenue jumped to $23.9 billion, representing a growth of 75% sequentially and 196% year-over-year. This performance was driven by record revenue in the DRAM segment of $18.8 billion (representing 79% of the total) with prices rising by approximately 65% sequentially, while NAND revenue recorded a record level of $5.0 billion (representing 21% of the total) with a price jump of approximately 75% sequentially due to tight supply conditions in the market.
On the profitability front and financial structure for the second quarter of 2026, Micron achieved a record gross margin of 75% and an exceptional net income of $13.8 billion, with diluted earnings per share of $12.07 (or $12.20 on a non-GAAP basis). Record revenues were distributed across different business units, with the Cloud Memory Business Unit (CMBU) and the Mobile and Client Business Unit (MCBU) each achieving revenues of $7.7 billion, while the Core Data Center Business Unit (CDBU) recorded $5.7 billion, and the Automotive and Embedded Business Unit (AEBU) recorded $2.7 billion.
Micron stock is currently trading at $998.99, which represents a significant increase above the average analyst consensus price target of $692.41, although it remains below the upper limit of expectations of $1,625. The current analyst consensus indicates a "Buy" recommendation, supported by historical earnings growth and the company's entry into the trillion-dollar club with a market capitalization of $1,126.6 billion.
Micron achieved record financial results in the second quarter of fiscal year 2026, with total revenue reaching $23.9 billion, marking a 196% growth compared to the previous year. Non-GAAP net income reached approximately $13.8 billion, with earnings per share of $12.20. The company also recorded a historic gross margin of 75% and record free cash flow of $6.9 billion.
Micron expects unprecedented record performance in the third quarter of fiscal year 2026, with guidance pointing to a target revenue of $33.5 billion (plus or minus $750 million). The company also expects its gross margin to rise to approximately 81%, and to achieve record earnings per share of up to $19.15 (plus or minus $0.40), supported by strong pricing and an improved product mix.
Strategic Customer Agreements (SCAs) are multi-year contracts that differ from traditional LTAs, which were limited to one year. Micron announced the signing of its first five-year SCA with a major customer. These agreements aim to provide specific volume and pricing commitments, giving the company significant stability, clear sales visibility, and the ability to invest with confidence in future production capacity.
Automated analysis for informational purposes only — not investment advice.
Artificial intelligence is reshaping the role of memory as a strategic asset, as AI models require massive capacities and ultra-high speeds to process data. Micron has begun commercial shipments of 36GB HBM4 memory dedicated to NVIDIA Vera Rubin processors for 2026. Additionally, On-Device AI applications are doubling memory requirements in smartphones and personal computers to a minimum of 32GB.
Micron expects capital expenditure to exceed $25 billion in fiscal year 2026 to address the significant gap between supply and demand. The company plans to increase capital expenditure allocated for construction by more than $10 billion in fiscal year 2027 to support its global expansions. These expansions include building new cleanrooms at the Tongluo site, starting initial production at the Idaho fab by mid-2027, and expanding operations in New York, Singapore, Japan, and India.