Micron shares are up 218% this year but have fallen 27% since hitting an all-time high in June, and the author views the recent dip as an opportunity for long-term investors. In fiscal Q4 2026, ended Sept. 3, revenue rose 379% year over year to $54.23 billion, GAAP gross margin reached 86.8% versus 44.7% a year earlier, and net income jumped 1077.8% to $37.7 billion. Guidance points to about $61.5 billion in revenue for fiscal Q1 2027 at the midpoint, up roughly 351%. The author notes some estimates see the memory chip shortage easing only around 2029, and considers the 5.05 forward P/E reasonable. Assuming EPS compounds at 12% a year over five years with the P/E unchanged, the cumulative return would be about 76%.
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- Are You Overpaying For Micron Stock Versus Its Peers?
Micron (MU) trades at 12.0 times earnings, below NVIDIA at 27.1 times and Western Digital at 13.4 times (figures predate its October 22 results), while Qualcomm is excluded from the P/E comparison after a loss in one quarter. Over its latest four quarters, Micron's sales rose 256.3%, against 83.4% for NVIDIA, and its operating margin reached 74.6%, against 65.2% for NVIDIA. Its operating margin rose from 32.3% in fiscal Q4 2025 to 80.7% in fiscal Q4 2026, though it posted an operating loss equal to 34.7% of sales in fiscal 2023 after a 31.6% margin in fiscal 2022. Management guided fiscal Q1 2027 revenue to $60 billion to $63 billion, against $54.2 billion in fiscal Q4 2026, and a GAAP gross margin of 86.0%; results are expected in December 2026.
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The article argues that the risk of a 30% fall in Micron (MU) stock depends largely on how long its operating margin holds. Micron's operating margin was 74.6% over the twelve months to September 3, 2026, compared with 26.1% a year earlier, and management ties this to rising memory prices while expecting those increases to moderate in the rest of fiscal 2027. Fiscal Q4 2026 sales reached $54.2 billion, up 379.3% from a year earlier, while the stock has dropped 30% or more from a high to a later low within the same year in 7 of the 10 calendar years from 2016 to 2025. The stock trades at 11.7 times trailing earnings versus 22.9 for the S&P 500, and fell 18.8% over the month to October 23, 2026. Management expects tight memory market conditions through 2028, and the article points to fiscal Q1 2027 results, expected in December 2026, as the next report to watch for the margin.
- Can Micron Stock Keep Climbing After a 10-Fold Run? Here's What Its Past Booms Say.
Micron's shares have risen about tenfold from their 2024 year-end close of roughly $84 and now sit near $903. The author argues that past Micron booms show the stock tends to fall before profits do, as earnings stayed strong for a time after prices peaked. The shares are currently 26% below their late-June closing high of $1,213.56, while GAAP earnings per share for fiscal 2026 reached $74.33 versus $7.59 the year before. Profit growth is slowing and DRAM prices are still rising but more slowly, and a price-to-earnings ratio of about 12 suggests the market doesn't expect those profits to last. The author suggests investors size positions with the risk of the next downturn in mind.
- Micron Stock Is 25% Below Its June Record. Is It a Buy Now?
Micron closed at $914.13 on October 14, about 25% below its June 25 closing record of $1,213.56 and its lowest close since August 24. The company beat its June guidance, reporting $54.2 billion in fiscal fourth-quarter revenue and $33.42 in adjusted EPS, and forecasts around $61.5 billion in revenue for fiscal first quarter 2027. However, DRAM price increases have slowed, Micron is raising capital spending on new cleanroom space, and Chinese rival CXMT plans a new server memory generation by the end of 2026. The author attributes the decline more to worries about memory prices than to Micron's results, noting the stock trades around 12 times fiscal 2026 earnings. The author says he is inclined to buy and hold for the long term, while acknowledging the stock could keep dropping for a while.
- Why Micron Technology Stock Rallied Today
Micron shares rose about 4.8% in Wednesday trading, after SK Hynix reported record fiscal 2026 third-quarter revenue of 104.6 trillion won (roughly $78.9 billion), up 328% year over year, and operating profit of 83.3 trillion won (roughly $61.7 billion). SK Hynix said demand is expected to outpace supply through 2030 and its supply is essentially sold out for the next three years, easing fears of falling memory demand from 2028, and announced it would return 100 trillion won to shareholders. The article says Micron, one of the Big Three memory makers, stands to benefit from demand for HBM, DRAM and NAND, and has locked major customers into multi-year, non-cancelable contracts. Micron stock has gained more than 340% over the past year but trades at 13 times earnings, and the author describes that valuation as attractive.
- Micron Technology Stock: Is Now the Time for Investors to Take Profits or Buy More?
Micron (MU) shares have been volatile and are down more than 25% from their peak. Some investors are optimistic that tech giants will keep spending heavily on AI, while others worry the memory shortage could end sooner than expected and trigger a near-term sell-off. In the trailing 12 months, operating income reached $99 billion on $133 billion of revenue, a 75% margin, versus $9.8 billion on $37.4 billion (26%) for the 12 months ended Aug. 28, 2025. The article argues such margins are unlikely to be sustainable in a historically cyclical business, as rivals have strong incentive to ramp up supply. It notes the stock is up over 1,200% in five years and has a market cap above $1 trillion, and says even growth investors may consider profit-taking, since a slowdown could make the stock look far more expensive.
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