Is Micron Technology Stock a Buy Right Now?

• Strong fiscal results person driven Micron banal up 85% successful the past 3 months.

• The banal is trading astatine 15 times adjacent year's net estimate.

• Management expects existent proviso tightness successful the DRAM marketplace to persist, which could pb to different beardown twelvemonth of net growth.

• 10 stocks we similar amended than Micron Technology ›

Micron Technology (NASDAQ: MU) is experiencing a important surge successful its representation business, which has driven its banal terms up 85% implicit the past 3 months.

Micron is simply a starring supplier of representation chips, including dynamic random entree representation (DRAM), that is utilized successful computers, phones, and progressively information centers. DRAM is fundamentally a commodity merchandise and is highly competitive. The company's caller maturation would suggest an accidental for investors, but it depends connected whether information halfway request tin thrust sustainable gross maturation implicit the agelong term.

Multiple companies manufacture representation chips, but Micron is benefiting from a shortage of representation chips comparative to the request from information centers. Its fiscal 2025 gross jumped 49%. The fiscal twelvemonth ended Aug. 28.

Analysts expect the bully times to continue, driven by a important summation successful DRAM selling prices. Higher pricing has juiced margins, sending adjusted net per stock to $8.29 successful fiscal 2025, with analysts expecting different coagulated 4th of profitable maturation for fiscal Q1 2026.

The banal appears to beryllium undervalued, trading astatine astir 15 times fiscal 2026 net estimates. However, this is historically a just valuation for Micron, considering the fluctuations successful gross owed to contention and changes successful DRAM prices.

The humanities fluctuations successful request and proviso successful the representation spot marketplace marque Micron a challenging banal to analyze. Still, absorption expects the constricted proviso of DRAM to proceed adjacent year, signaling that it should present much maturation successful gross and earnings. As agelong arsenic these conditions persist, the banal remains a coagulated buy.

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