Micron: State Of The Cycle (Rating Downgrade) (NASDAQ:MU)

Core Viewpoint - Micron Technology, Inc. (MU) has experienced significant revenue growth, but the company may be nearing a cyclical peak in the DRAM market, leading to a downgrade in stock rating to Sell [1]. Company Summary - Micron reported a revenue growth of 196% year-over-year (YOY) for FQ2 2026, with sales reaching $23.86 billion, exceeding market expectations by $4.32 billion, which is a more than 22% beat [2]. - The unprecedented financial expansion is attributed to a surge in DRAM prices and robust orders, highlighting the volatility of the memory cycle [3]. Industry Summary - The long-term DRAM market is characterized by deep cyclicality, typically following a four-year cycle, where EV/Sales ratios and contract prices are closely correlated [4].