Is Micron Technology Stock a Buy Right Now?
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Revenue is booming from surging memory prices.Micron Technology (MU 6.70%) is experiencing a significant surge in its memory business, which has driven its stock price up 85% over the last three months. Micron is a leading supplier of memory chips, including dynamic random access memory (DRAM), that is used in computers, phones, and increasingly data centers. DRAM is basically a commodity product and is highly competitive. The company's recent growth would suggest an opportunity for investors, but it depends on whether data center demand can drive sustainable revenue growth over the long term. Image source: Micron Technology. Data center demand is sending memory prices soaring Multiple companies manufacture memory chips, but Micron is benefiting from a shortage of memory chips relative to the demand from data centers. Its fiscal 2025 revenue jumped 49%. The fiscal year ended Aug. 28. Analysts expect the good times to continue, driven by a significant increase in DRAM selling prices. Higher pricing has juiced margins, sending adjusted earnings per share to $8.29 in fiscal 2025, with analysts expecting another solid quarter of profitable growth for fiscal Q1 2026. ExpandNASDAQ: MUMicron TechnologyToday's Change(-6.70%) $-17.32Current Price$241.14Key Data PointsMarket Cap$271BDay's Range$239.32 - $255.8252wk Range$61.54 - $264.75Volume26MAvg Vol26MGross Margin40.17%Dividend Yield0.19% The stock appears to be undervalued, trading at around 15 times fiscal 2026 earnings estimates. However, this is historically a fair valuation for Micron, considering the fluctuations in revenue due to competition and changes in DRAM prices.Advertisement The historical fluctuations in demand and supply in the memory chip market make Micron a challenging stock to analyze. Still, management expects the limited supply of DRAM to continue next year, signaling that it should deliver more growth in revenue and earnings. As long as these conditions persist, the stock remains a solid buy.About the AuthorJohn Ballard has been a contributing writer at The Motley Fool since 2016, covering consumer goods and technology stocks. He holds a bachelor’s degree in business administration with a focus in real estate finance from the University of Arkansas at Little Rock.TMFRazorbackRead NextDec 12, 2025 •By Harsh ChauhanShould You Buy Micron Technology Stock Before Dec. 17?Dec 10, 2025 •By Rick OrfordThe Case for Buying This Under-the-Radar AI Stock Before Its Next Big CatalystDec 9, 2025 •By Jon QuastForget Generative AI: Agentic AI Is the Next Big Trend to BuyDec 9, 2025 •By Parkev Tatevosian, CFAIs Micron Stock a Buying Opportunity for 2026?Dec 7, 2025 •By Anders BylundInterested in Micron Technology (MU)?
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