Micron Technology (MU)
NASDAQInformation TechnologySemiconductorsSnapshot 2026-07-07
$938.38-4.71%
Close 2026-07-07 · 1-day change
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Micron is growing revenue fast, driven by AI and data center demand. Revenue rose from $8.05B in 2025-Q2 to $41.46B in 2026-Q3. Profit margins improved sharply to about 85%, with guidance for 86%. EPS grew from $1.68 to $24.67, showing strong profitability.
The recent sharp selloff and guidance cut show risks to growth. Memory market volatility and AI demand uncertainty could hurt revenue and margins. If growth slows below expectations, the stock may fall further.
The price is about 5% below our fair value near $996, reflecting roughly 100% revenue growth expected by analysts. Our fair value is 28% below the Street median, indicating some caution versus more optimistic views.
Breaks if: EPS falls below $19 in 2026-Q4
Focus on increasing EPS through revenue growth, margin expansion, and operational efficiency.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
EPS growth has been emphasized in 6 quarters from 2025-Q2 to 2026-Q3. Diluted EPS increased from $1.68 in 2025-Q3 to $24.67 in 2026-Q3, with guidance for $30.73 in 2026-Q4. This reflects strong profitability growth consistent with management's stated priority.
“Diluted EPS $24.67 in Q3 2026, up from $12.07 prior quarter and $1.68 year ago.”
“Diluted EPS $12.07 in Q2 2026, up from $4.60 prior quarter.”
“Diluted EPS $4.60 in Q1 2026, up from $1.68 prior quarter.”
“Diluted EPS $2.83 in Q4 2025, up from $1.68 in Q3 2025.”
“Diluted EPS $1.68 in Q3 2025, up from $1.41 prior quarter.”
“Diluted EPS $1.41 in Q2 2025, up from $1.67 prior quarter.”
Breaks if: gross margin falls below 80% in 2026-Q4
Sustain gross margin levels near 80-86% through operational excellence and product mix improvements.
Management stated gross margin improvement as a priority in 6 quarters from 2025-Q2 to 2026-Q3. Gross margin rose substantially from 37.7% in 2025-Q3 to 84.6% in 2026-Q3, with guidance for 86% in 2026-Q4. The trajectory shows strong delivery on margin improvement consistent with management's stated goal.
“Gross margin 84.6% in Q3 2026, up from 74.4% prior quarter and 37.7% year ago.”
“Gross margin approximately 67-68% in Q2 2026, guidance for Q3 was 81%.”
“Gross margin 56.0% in Q1 2026, up from 44.7% prior quarter.”
“Gross margin 44.7% in Q4 2025, up from 37.7% in Q3 2025.”
“Gross margin 37.7% in Q3 2025, up from 26.9% year ago.”
“Gross margin 36.8% in Q2 2025, up from 18.5% year ago.”
Breaks if: revenue falls below $33B in 2026-Q4
Focus on leveraging AI and data center demand to achieve record revenue growth across business units and product lines.
Stated as a priority in all 6 quarters from 2025-Q2 through 2026-Q3. Revenue grew from $8.05 billion in 2025-Q2 to $41.46 billion in 2026-Q3, driven by strong AI and data center demand. Data center revenue more than doubled year-over-year in 2026-Q3. Management consistently emphasized AI-driven growth and strategic customer agreements, and the financials show delivering on this priority.
“Micron's record fiscal Q3 financial results and even stronger outlook reflect the strategic value of memory in the AI era.”
“Our Q2 outlook reflects substantial records across revenue, gross margin, EPS and free cash flow.”
“Micron delivered record revenue and significant margin expansion at the company level and in each business unit.”
“Micron closed out a record-breaking fiscal year with exceptional Q4 performance, underscoring leadership in technology and operational execution.”
“Micron delivered record revenue in fiscal Q3, driven by all-time-high DRAM revenue including nearly 50% sequential growth in HBM revenue.”
“Micron delivered fiscal Q2 EPS above guidance and data center revenue tripled from a year ago.”