Morningstar Rating
Stock XNAS Rating as of
$139.54 −4.65(3.22%)
View Full ChartAs of Delayed Price Closed
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Company Report
Company Report
Micron Is a Cyclical Memory Chipmaker With Growing Exposure to AI
William Kerwin
We see Micron Technology as a strong supplier of memory chips, but we don’t believe the firm holds an economic moat. Micron benefits from large scale, being the fifth-largest chipmaker in the world, but we don’t see enough scale to generate consistent economic profits. Micron holds a third-place market share in dynamic random access memory, or DRAM, chips and a fifth-place market share in not-and, and NAND, flash chips. We view both the DRAM and NAND markets as highly cyclical, and we expect Micron to thrive in periods of strong demand and pricing, but to be vulnerable to downcycles that compress shipments, prices, and profits.
MU is trading at a 844% premium.
Price
$139.54
Fair Value
$13.00
Uncertainty
High
- 1-Star Price
- $322.00
- 5-Star Price
- $76.00
- Economic Moat
- Rtr
- Capital Allocation
- Yzrqxsspt
Bulls Say, Bears Say
Bulls Say, Bears Say
Bulls
When memory markets are in an upswing and demand is strong, Micron’s sales growth and profitability can be impressive.
Bears
Micron has a high fixed cost base that leaves it vulnerable to underutilization charges and major profit compression when memory markets enter a downturn.
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News
News
- Wall Street sees corporate profit margins creeping toward 2021 levels, as three household names prep earnings
- As Nvidia drives a chip rally in 2024, why are some AI stocks getting left behind?
- Micron Technology Worst Performer in the Nasdaq 100 So Far Today — Data Talk
- Not all semiconductor ETFs are the same. What investors need to know before betting on Nvidia and other chip stocks.
- Nvidia's stock turns sharply lower with a $246 billion swing in market cap
- Micron Technology on Pace for Largest Percent Decrease Since November 2022 — Data Talk
- Nvidia's stock turns sharply lower with a $230 billion swing in market cap
- Nvidia's stock furthers gains, and an analyst says not to fight the 'AI train'
Trading Information
Trading Information
- Previous Close Price
- $144.19
- Day Range
$135.70–142.60
- 52-Week Range
$60.50–157.54
- Bid/Ask
- $140.03/$140.05
- Market Cap
- $154.52 Bil
- Volume/Avg
- 51.2 Mil/22.9 Mil
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- —
- Price/Sales
- 8.37
- Dividend Yield (Trailing)
- 0.33%
- Dividend Yield (Forward)
- 0.33%
- Total Yield
- 0.33%
Company Profile
Company Profile
Micron is one of the largest semiconductor companies in the world, specializing in memory and storage chips. Its primary revenue stream comes from dynamic random access memory, or DRAM, and it also has minority exposure to not-and or NAND, flash chips. Micron serves a global customer base, selling chips into data centers, mobile phones, consumer electronics, and industrial and automotive applications. The firm is vertically integrated.
- Sector
- Technology
- Industry
- Semiconductors
- Stock Style Box
- Large Core
- Total Number of Employees
- 43,000
- Website
- https://www.micron.com
Competitors
Competitors
- Samsung Electronics Co Ltd 005930
- SK Hynix Inc 000660
- Western Digital Corp WDC
Valuation
Valuation
| Metric | MU | 005930 | 000660 |
|---|---|---|---|
Price/Earnings (Normalized) | — | 27.67 | — |
Price/Book Value | 3.52 | 1.50 | 2.90 |
Price/Sales | 8.37 | 1.79 | 4.01 |
Price/Cash Flow | 28.68 | 9.16 | 16.52 |
Price/Earnings
MU
005930
000660
Financial Strength
Financial Strength
| Metric | MU | 005930 | 000660 |
|---|---|---|---|
Quick Ratio | 2.13 | 1.78 | 0.77 |
Current Ratio | 3.74 | 2.55 | 1.41 |
Interest Coverage | −8.01 | 15.09 | −2.83 |
Quick Ratio
MU
005930
000660
Profitability
Profitability
| Metric | MU | 005930 | 000660 |
|---|---|---|---|
Return on Assets (Normalized) | −4.01% | 4.72% | −4.08% |
Return on Equity (Normalized) | −5.85% | 6.10% | −7.40% |
Return on Invested Capital (Normalized) | −4.47% | 4.99% | −3.51% |
Return on Assets
MU
005930
000660
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Semiconductors Industry Comparables
Semiconductors Industry Comparables
| 1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| NVIDIA Corp NVDA | Vnpcsdlgtf | Bsfpk | $3.1 Tril | |||
| Taiwan Semiconductor Manufacturing Co Ltd ADR TSM | Wwkrldwkl | Cwc | $777.4 Bil | |||
| Broadcom Inc AVGO | Kwlfwnnlf | Mgly | $772.1 Bil | |||
| Advanced Micro Devices Inc AMD | Wqxwftpfw | Ldzfpyf | $260.6 Bil | |||
| Qualcomm Inc QCOM | Ywxnqckn | Rylfw | $237.2 Bil | |||
| Texas Instruments Inc TXN | Wbgpqzthy | Llplf | $178.0 Bil | |||
| ARM Holdings PLC ADR ARM | Gnhkhcwsq | Fbrh | $168.0 Bil | |||
| Intel Corp INTC | Ympbjpgq | Zss | $132.3 Bil | |||
| Analog Devices Inc ADI | Pblwxkmlc | Gqtx | $114.7 Bil |
