What you think about Micron Technology (MU -2.52%) could depend on how you view the proverbial glass of water, either half-full or half-empty. The half-full side would point to Micron’s impressive year-to-date gain of more than 150%. The half-empty folks would quickly add that the memory chip stock has plunged 40% since late June.
Some might look at the steep sell-off over the last few months and conclude that the best days for Micron are now behind it. But is it too late to buy Micron stock?
Image source: Micron Technology.
Examining the data
Micron’s shares weren’t expensive compared to the S&P 500 (SNPINDEX: ^GSPC) even at its summer peak. Valuation certainly isn’t a concern now, with the stock trading at only 4.2 times forward earnings. Sure, the fact that Micron is a cyclical stock weighs on its valuation. However, such a low forward earnings multiple is dirt cheap no matter how you look at it.
The good times don’t appear to be over for Micron’s business, either. The company’s revenue soared by roughly 4.8x year over year to $54.2 billion in the quarter ending Sept. 3, 2026. GAAP earnings grew even faster, skyrocketing 11.8x year over year.
There appears to be no end in sight to the ongoing supply demand imbalance for memory chips. COO Manish Bhatia said in the fiscal Q4 earnings call, “[W]e are seeing stronger demand drivers than we’ve seen before.” He added that more than 75% of Micron’s shipments are already committed for fiscal year 2027.
If and when the current data center boom wanes, Micron could have another catalyst on the way. CEO Sanjay Mehrotra said in the company’s Q3 earnings call that humanoid robots could create “a sustained, substantial multi-decade memory demand cycle to begin in the latter part of this decade.”
MU Micron Technology
$778.31-$20.13 (-2.52%)
NASDAQ · As of 4:00 PM ET 11/13/26
The verdict on Micron
You probably have a pretty good idea what my verdict is on Micron: I don’t think it’s too late to buy the stock. I’m not the only one with that take. Of the 29 analysts who have rated Micron over the past three months, all but one recommended buying the stock. The average 12-month price target reflects a potential upside of well over 100%.
I suspect that quite a few investors have wondered over the last 18 months if it was too late to jump aboard the Micron bandwagon. The answer so far has been a resounding “no.” I think that’s still the answer.
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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.