Micron Technology, Inc. (MU)

FairStock Score: 90/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Micron as a cyclical semiconductor memory producer, not a stable consumer franchise. The filed numbers are extraordinary: in fiscal Q3 2026, the quarter ended 2026-05-28, revenue was $41.5B and net income $28.2B, versus revenue of $9.3B and net income of $1.9B in fiscal Q3 2025. For FY2026, the year ended 2026-09-03, revenue was $133.2B, net income $85.0B, and diluted EPS $74.33, compared with FY2025 revenue of $37.4B, net income of $8.5B, and EPS of $7.59. This is a powerful upcycle, and the balance sheet is strong: the data show debt/equity 0.06, FairStock calculates Altman Z 21.47 and Piotroski 7/9, and TTM free cash flow is $26.2B. Yet I ask what Mr. Market is paying. At the 2026-10-16 close of $878.84, FairStock calculates P/E 19.84, P/B 9.85, EV/EBITDA 15.15, FCF yield 2.6%, and a Graham Number of $298.11, implying a negative margin of safety of 212.38%. The PEG of 0.02 looks dazzling, but it leans on boom earnings. A 68.13% quarterly net margin invites competition and mean reversion. Memory has scale advantages but historically poor pricing power through cycles. FairStock calls it a TURNAROUND because it returned to profit after a loss within the last three years; I see a strong but cyclical business whose current earnings may be peak-like. The stock is not Graham-cheap; it is a bet that exceptional memory economics persist.

In plain English: Micron makes memory and storage chips used in data centers, phones, cars, and other electronics. The business looks very strong right now, with big sales, big profits, and little debt, but chip profits can swing sharply. At the recent price, the shares look expensive compared with the company's accounting value and cash flow, but not compared with recent earnings if those earnings last.

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Data as of 2026-10-16 close · note generated 2026-10-20 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-05-28) · fiscal Q2 2026 10-Q (period ended 2026-02-26) · fiscal Q1 2026 10-Q (period ended 2025-11-27) · fiscal Q3 2025 10-Q (period ended 2025-05-29) · FY2026 10-K (period ended 2026-09-03) · FY2025 10-K (period ended 2025-08-28) · FY2024 10-K (period ended 2024-08-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer