Micron Technology (NASDAQ:MU) Trading 16.5% Higher - Still a Buy?

Key Points

• Micron shares surged 16.5% to about $861 as memory stocks rallied on stronger pricing, tight supply-demand conditions and resilient AI-infrastructure demand.
• Micron reported strong fiscal third-quarter results, with revenue up 345.8% year over year to $41.46 billion and EPS of $25.11, beating expectations. Its high-bandwidth-memory ramp for Nvidia’s next-generation AI platform is a major growth driver.
• Analysts maintain a consensus “Buy” rating, with an average price target of $1,268.93, although investors should weigh high volatility, cyclical and execution risks, potential future DRAM competition from China, and recent insider selling.

Micron Technology, Inc. (NASDAQ:MU - Get Free Report)'s share price was up 16.5% during trading on Thursday . The company traded as high as $846.88 and last traded at $860.9170. Approximately 21,300,774 shares traded hands during mid-day trading, a decline of 53% from the average daily volume of 45,711,422 shares. The stock had previously closed at $739.00.

More Micron Technology News

Here are the key news stories impacting Micron Technology this week:

• Positive Sentiment: Memory stocks broadly rallied as investors focused on stronger pricing, improving supply-demand conditions and resilient demand from artificial-intelligence infrastructure. Memory Stocks Blast Off
• Positive Sentiment: Analyst commentary remains bullish: Wolfe Research’s Chris Caso argued that a semiconductor oversupply cycle is unlikely before 2028 because the industry lacks the infrastructure to rapidly add sufficient capacity. That supports Micron’s pricing power and margins. Top Chip Analyst on Semiconductor Oversupply
• Positive Sentiment: Micron’s latest results provide a strong fundamental backdrop, with fiscal third-quarter revenue of $41.46 billion, up roughly 346% year over year, and EPS of $25.11 versus $21.39 expected. Its high-bandwidth-memory ramp for Nvidia’s next-generation AI platform is a key growth driver, while Wall Street’s average price target of about $1,507 implies substantial upside. Micron Wall Street Price Target
• Positive Sentiment: Samsung’s operating profit surged more than 1,800% and management indicated that the memory shortage could persist through 2028, reinforcing the view that AI demand has not yet peaked. Micron Stock and Samsung Earnings
• Neutral Sentiment: Analysts maintain a consensus “Buy” rating, but Micron remains highly volatile after its significant prior run-up and recent decline. Investors are weighing attractive long-term valuation against elevated cyclical and execution risks.
• Negative Sentiment: CEO Sanjay Mehrotra sold approximately $37.3 million of Micron shares, while Chief Accounting Officer Scott Allen sold about $879,000. The sales may weigh on sentiment, although both executives retained substantial holdings and the transactions do not by themselves establish a change in business outlook. Micron CEO Insider Sale
• Negative Sentiment: Earlier pressure came from SK Hynix’s revenue miss, fears of an AI-spending slowdown, broad semiconductor de-risking and concern that China’s CXMT could eventually increase DRAM competition. These risks remain important despite the current rebound. Chip Stocks Selloff After SK Hynix Earnings

Analyst Ratings Changes

A number of brokerages have commented on MU. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Micron Technology from $1,500.00 to $1,550.00 and gave the stock a "buy" rating in a report on Thursday, June 25th. Wells Fargo & Company increased their price objective on Micron Technology from $1,220.00 to $1,525.00 and gave the company an "overweight" rating in a research report on Thursday, June 25th. Erste Group Bank raised Micron Technology from a "hold" rating to a "buy" rating in a research note on Thursday, June 25th. Wolfe Research set a $1,500.00 price objective on Micron Technology in a report on Thursday, June 25th. Finally, Needham & Company LLC lifted their price target on shares of Micron Technology from $1,550.00 to $1,650.00 and gave the stock a "buy" rating in a research report on Thursday, June 25th. Four analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $1,268.93.

Micron Technology Trading Up 16.8%

The company has a debt-to-equity ratio of 0.05, a current ratio of 3.42 and a quick ratio of 2.98. The business has a 50-day simple moving average of $973.22 and a two-hundred day simple moving average of $634.95. The stock has a market cap of $974.53 billion, a price-to-earnings ratio of 19.57 and a beta of 2.14.

Micron Technology (NASDAQ:MU - Get Free Report) last posted its quarterly earnings results on Wednesday, June 24th. The semiconductor manufacturer reported $25.11 earnings per share for the quarter, beating analysts' consensus estimates of $21.39 by $3.72. The business had revenue of $41.46 billion for the quarter, compared to analysts' expectations of $35.91 billion. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The firm's revenue for the quarter was up 345.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.91 EPS. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS. Equities analysts forecast that Micron Technology, Inc. will post 72.93 EPS for the current fiscal year.

Micron Technology Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Shareholders of record on Monday, July 6th were issued a $0.15 dividend. The ex-dividend date of this dividend was Monday, July 6th. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. Micron Technology's payout ratio is currently 1.36%.

Insiders Place Their Bets

In related news, CAO Scott R. Allen sold 879 shares of the stock in a transaction that occurred on Thursday, July 23rd. The stock was sold at an average price of $1,000.00, for a total transaction of $879,000.00. Following the sale, the chief accounting officer owned 34,958 shares of the company's stock, valued at $34,958,000. This represents a 2.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Lynn A. Dugle sold 1,300 shares of the firm's stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $1,150.43, for a total value of $1,495,559.00. Following the completion of the transaction, the director owned 17,728 shares in the company, valued at $20,394,823.04. The trade was a 6.83% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 204,179 shares of company stock valued at $190,836,321 in the last quarter. Company insiders own 0.24% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Heritage Trust Co lifted its holdings in shares of Micron Technology by 9.7% in the 4th quarter. Heritage Trust Co now owns 15,026 shares of the semiconductor manufacturer's stock worth $4,289,000 after purchasing an additional 1,323 shares in the last quarter. Castleark Management LLC purchased a new stake in shares of Micron Technology during the first quarter worth $3,709,000. Financial Synergies Wealth Advisors Inc. purchased a new stake in Micron Technology during the 4th quarter worth about $1,316,000. PKO BP BANKOWY Universal Pension Society JSC bought a new stake in shares of Micron Technology during the 4th quarter valued at about $61,306,000. Finally, Dara Capital US Inc. purchased a new stake in shares of Micron Technology in the 4th quarter valued at $2,926,000. 80.84% of the stock is currently owned by institutional investors and hedge funds.

About Micron Technology

Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.

Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.

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