Is Micron Technology Stock a Buy Right Now?

Core Insights - Micron Technology is experiencing a significant surge in its memory business, with stock prices increasing by 85% over the last three months due to rising memory prices [1][4]. Company Overview - Micron is a leading supplier of memory chips, particularly dynamic random access memory (DRAM), which is utilized in computers, phones, and data centers. The competitive nature of DRAM as a commodity product presents both opportunities and challenges for investors [2]. Market Demand and Revenue Growth - The demand from data centers is driving a shortage of memory chips, which has resulted in a 49% increase in Micron's fiscal 2025 revenue [4]. - Analysts predict continued growth, fueled by a significant rise in DRAM selling prices, with adjusted earnings per share reaching $8.29 in fiscal 2025 and expectations for strong growth in fiscal Q1 2026 [5]. Financial Metrics - Micron's current market capitalization stands at $271 billion, with a stock price of $241.20. The stock is trading at approximately 15 times fiscal 2026 earnings estimates, which is considered a fair valuation given the historical revenue fluctuations [6][7]. - The company has a gross margin of 40.17% and a dividend yield of 0.19% [7]. Future Outlook - Management anticipates that the limited supply of DRAM will persist into the next year, suggesting potential for further revenue and earnings growth. As long as these market conditions remain, Micron is viewed as a solid investment opportunity [7].