Micron Stock Is 25% Below Its June Record. Is It a Buy Now?
The memory maker now sees more earnings a quarter than it did when its shares peaked. Has the sell-off been overdone?
Micron Technology's stock price has fallen 25% below its record high of $1,213.56, reaching $914.13 as of Oct. 14. Despite this decline, the company has exceeded its financial projections, posting $54.2 billion in revenue and $33.42 in adjusted earnings per share for Q4. Management now expects revenue of $61.5 billion and earnings of $38 per share for the first quarter of fiscal 2027, a 23% increase from the previous outlook.
The tightness of memory supply has also improved, with CEO Sanjay Mehrotra projecting even tighter conditions in 2027 and 2028. While price increases have slowed, the company expects a more moderate rate for the remainder of fiscal 2027. Capital expenditures are rising, with $25 billion allocated for the first half of fiscal 2027, mainly for new cleanroom space.
Competitors like CXMT are also ramping up production. The stock's valuation has dropped significantly, trading at around 12 times its fiscal 2026 earnings, down from 27 times in June. Despite the sell-off, Micron's results have remained strong, and the company is seen as a potential buy for long-term investors.
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