Micron trades at 13.1 times its trailing twelve-month earnings, versus 22.6 times for the S&P 500, with a net margin of 63.8% over those twelve months. On its September 30, 2026 earnings call for fiscal Q4 2026, management said fiscal 2027 margins should expand from the first quarter on continued price increases, although those increases are expected to moderate over time. About three quarters of revenue under long-term supply agreements has a defined pricing framework. Fiscal Q4 2026 revenue reached $54.2 billion, up 379.3% year over year, with gross margin of 86.8%. The stock closed 19.0% below its highest close of the past year and trades at 8.3 times sales, down from 14.4 times at the end of June 2026; the article points to gross margin as the metric to watch in the report expected in December 2026.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Micronsemiconductorsvaluationartificial intelligence
Open a keyword to see other news on the same topic.
Related news
- Here's Why Micron Is a Top AI Stock to Buy Right Now
Micron (MU) shares have more than tripled so far in 2026, and the author believes the company could repeat that performance in 2027. Micron makes NAND and HBM memory chips, key components of AI data center hardware, and it and its peers have already sold out their production capacity for this year. Management expects memory market tightness to be worse in 2027 and 2028 than in 2026, even though new Micron facilities begin coming online in mid-2027. The company is also shifting to long-term supply agreements with price floors and ceilings, under which 35% of its revenue through 2030 is already known. The stock trades at under 5 times forward earnings; the author says it could triple again if it returns to the 15-times level it reached in June, and views the current low valuation as a favorable time for investors to get in.
- 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.
- What a $1,000 Investment in Micron Could Be Worth by the End of 2027
Micron's stock has more than tripled so far in 2026, placing it among the top five best performers in the S&P 500. The author argues the company is shifting toward a more stable chip-supplier model through long-term take-or-pay agreements, with 35% of revenue locked in through 2030. Micron has told investors that 2027 and 2028 will be tougher, but new capacity coming online from mid-2027 to late 2028 is still expected to fall short of rising demand. Wall Street analysts expect revenue to grow 107% in 2027, while the stock trades at 4.8 times fiscal 2027 earnings estimates. The author estimates that if the stock reaches 20 times earnings, a $1,000 investment could exceed $4,000 by the end of 2027, though this depends on whether the market awards a higher valuation.
- Chip Stocks to Buy After Their Worst Day Since June
The PHLX Semiconductor Index fell 6.7% on Oct. 22, its worst day since June 23, after Lam Research reported record revenue of $8.22 billion but warned that clean-room space and parts shortages would limit chipmakers' ability to meet demand into 2027. Micron expects memory supply to stay tight in 2027 and 2028, yet its stock is down 29% from its June 25 record close. AMD and Marvell are each about 22% below their Oct. 6 closes. The author says all three are worth considering after the drop, with Micron the first to look at because its price seems to reflect a downturn its own outlook does not show. AMD and Marvell carry higher earnings multiples and need their plans to hold up, and a slowdown in AI spending could still hit all three hard.
- AI Stocks Surge, Then Plunge: Which of 4 Sectors Is Worth Buying?
Micron has risen 324.5% over the past year, while Nvidia barely moved, yet AI-linked stocks across four business groups have all pulled back from their highs. The article groups ten companies by business model: memory (Micron, SK hynix), storage (Seagate, Western Digital), chip equipment (Applied Materials, Lam Research), and AI platforms and buyers (Nvidia, TSMC, Amazon, Meta). Memory stocks corrected about 28%–31% after AI-driven demand and pricing gains, while storage stocks gained roughly 175% but fell about 48% on average. Equipment makers, up 56%–65%, are down about 47%, whereas Nvidia, TSMC, Amazon and Meta remain within 12%–17% of their highs. The article suggests investors are now valuing companies by their business economics and exposure to future AI spending.
- Could a $10,000 Investment in Micron Set You Up for Life?
Micron shares rose more than 850% between June 25, 2025 and June 25, 2026, so a $10,000 investment made on the first date would have grown to $95,370, or about $70,970 after a 25% drop from the peak. Despite the rally, the price-to-earnings ratio fell from about 22 times in June 2025 and 27 times at its June 2026 peak to about 12 times, even as revenue grew 256% and per-share earnings 879% in 16 months. The article says the market fears the memory cycle could turn as it did in the 2023 price crash, and worries about competition from Samsung Electronics, SK Hynix and Chinese manufacturers; Micron has signed multiyear supply deals with price floors to reduce risk. It says a $10 trillion valuation seems unlikely soon, and that although a $10,000 stake may not secure lifelong wealth, AI infrastructure growth could support Micron for years.
Related markets
Latest news
- Why Google faces a potential $400 billion market-value hit
Alphabet shares fell more than 10% in pre-market trading after its third-quarter earnings missed Wall Street estimates, a drop that could be one of the biggest market-value declines ever given the company's roughly $4 trillion valuation. A 10% decline would equal about $400 billion in value. Advertising revenue and YouTube both missed expectations, and EPS was hit by a paper loss on its SpaceX investment. Capex for the quarter was $51.36 billion, below the $55.09 billion estimate, yet Alphabet kept its 2026 capex guidance and projects $300 billion for 2027. Pepperstone's Chris Weston said the market is questioning how much investors should pay for Alphabet's AI opportunity, given the substantial cash flow costs of building it.
- Alphabet Lost About $450 Billion After Hours Even as Google Cloud Doubled
Alphabet lost an estimated $390–396 billion in value after hours on October 28, 2026, even as Google Cloud revenue rose 103% to $30.709 billion in the third quarter and Cloud profit roughly tripled. Diluted EPS of $2.12 fell short of the roughly $3.01 consensus, as an $8.7 billion loss on equity securities cut EPS by $0.55, a non-cash revaluation. Capex rose to $51.355 billion from $23.953 billion, pushing free cash flow to negative $9.065 billion, though Alphabet kept its 2026 capex guidance of $195–205 billion. Google Cloud's backlog reached $561 billion, and about 55% of it is expected to convert to revenue within two years.
- Satya Nadella Says Renting AI Capacity to a Few Big Customers Is “Not a Business”
In its October 28, 2026 earnings call, Satya Nadella said serving about 4 large customers that buy heavy capacity, even with several quarters of growth, is “not a business” as far as he is concerned. Microsoft reported revenue of $92.3 billion, up 19%, with Azure up 48%, and shares rose 2.90% to $546.39 after hours. Nadella said Microsoft is open to selling capacity to large buyers “as long as the pricing is right,” while favoring enterprise customers running recurring workflows. Capex of $45.2 billion came in below Amy Hood's guidance of over $50 billion because some third-party capacity deliveries were delayed, while demand still exceeded supply. Commercial remaining performance obligation rose 73% to $677 billion, and OpenAI contributed $10.0 billion, about 10.8% of revenue.
- Microsoft’s Severance Offer to 60,000 Employees Is All About AI Capex Confidence
Microsoft included the cost of its voluntary exit offer for about 60,000 eligible employees in its operating expense guidance of $18.5 to $18.6 billion, while guiding calendar-year capex to approximately $170 billion. Fiscal first-quarter revenue rose 18.8% to $92.28 billion, Azure grew 48%, and commercial remaining performance obligation reached $677 billion, up 73%, with about 30% expected to convert to revenue within 12 months. Non-GAAP EPS was $4.89 versus a $4.72 estimate, operating cash flow rose 29% to $58 billion, and free cash flow was $18.6 billion. The company's filings warn that its cloud and AI investments may not achieve expected returns, while cash and equivalents fell 29.7% to $20.28 billion and Microsoft Cloud gross margin slipped to 66%.
- AI Has Made Flash Memory 5 Times More Expensive, and Apple Can’t Bully Its Memory Suppliers Anymore
According to The Wall Street Journal, the flash memory cost of the storage upgrade on an iPhone 17 Pro from its 256GB base rose from $15 to $66, as AI hyperscaler demand quintupled flash prices. The four biggest cloud buyers now purchase more than double Apple's NAND volume, and three of them have signed long-term contracts that guarantee suppliers high prices even if the market falls. TechInsights estimates Apple will spend about $25 billion on NAND this year, up from about $6 billion in 2025. Storage upgrades were once Apple's richest margin, at about 85%, but that cost gap is now narrowing. Apple reports fiscal fourth-quarter results on November 2 and has not disclosed its supplier contract terms.
- Third-quarter U.S. GDP increases a better-than-expected 3.4% as September inflation accelerates
The Commerce Department reported that U.S. GDP grew at a seasonally adjusted annualized pace of 3.4% in the third quarter, above the 3.1% estimate and well up from 2.2% in the second quarter. Consumer spending rose 0.5%, slightly below the forecast of 0.6%, while personal income increased 0.2% against a forecast of 0.3%. The same day, the personal consumption expenditures (PCE) price index rose 0.5% in September from the prior month, lifting annual inflation to 3.6%; the monthly rate matched the Dow Jones consensus, while the annual rate was 0.1 percentage point below consensus. Core PCE, which excludes food and energy, rose 0.3% monthly and 3.1% annually, in line with consensus. A day earlier, the Fed held its benchmark rate in a 3.75%-4% range, and Chairman Kevin Warsh said officials want to assess incoming data before deciding their next move.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.