Micron (MU) Stock: Why Jim Cramer Says the Memory Shortage Is Here to Stay

TLDR

• Micron reported Q3 revenue of $41.46 billion, up 346% year over year, with EPS of $25.11 — beating estimates by over $4.
• CEO Sanjay Mehrotra told Jim Cramer the memory chip shortage is structural, not cyclical, with new fabs not coming online until 2027–2028.
• HBM3E and HBM4 memory are 100% sold out through 2027, with hyperscalers committing $22 billion in advance deposits to secure supply.
• Micron has already shipped more than $1 billion in HBM4 and claims technology leadership over SK Hynix and Samsung in both DRAM and NAND.
• MU is trading near $970, down from a 52-week high of $1,255, yet still up around 244% year to date.

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Micron Technology (MU) is trading near $970, off its 52-week high of $1,255 set on June 25, but still up roughly 244% year to date. The pullback hasn’t changed the underlying story — and CEO Sanjay Mehrotra made that clear in a sit-down with Jim Cramer on Mad Money on June 30.

Micron Technology, Inc., MU

Cramer opened with the question investors keep circling: when does the memory shortage end? Mehrotra didn’t dance around it.

“The industry needs greenfield capacity. That means new construction of clean rooms. Those clean rooms take a long time from shovel in the ground to first wafers out.”

Micron’s first Idaho fab will have wafers out by mid-2027, with production ramping mainly in 2028. A second Idaho fab comes online by end of 2028. The New York facility follows after that. The shortage, in other words, isn’t going away soon.

Cramer had previously called out Micron’s Q3 results as one of the biggest earnings beats he’s ever seen. The numbers back that up. Revenue came in at $41.46 billion, up 346% year over year from $9.30 billion. Non-GAAP EPS hit $25.11, against an estimate of $20.78. Free cash flow reached $18.30 billion — a company record.

Q4 guidance is even more striking: $50 billion in revenue, roughly 86% gross margins, and EPS of $31.00.

The HBM4 Milestone

HBM3E and HBM4 memory are 100% sold out through calendar year 2027, with order books already extending into 2028. Hyperscalers have committed $22 billion in advance cash deposits to lock up supply.

On the earnings call, Mehrotra disclosed that Micron had already shipped more than $1 billion in HBM4. That’s not just a revenue number — it’s a technology signal. HBM4 is the most complex memory product in the world to manufacture, and Micron is the only U.S.-based company producing it at scale.

When Cramer pressed him directly on whether Micron has pulled ahead of SK Hynix and Samsung, Mehrotra was clear: “When it comes to DRAM as well as NAND technology, we are a clear technology leader.” Micron now holds close to 65,000 patents.

Cramer also flagged the valuation. Despite the run, MU trades at under eight times earnings.

The U.S. Manufacturing Push

Micron has committed $200 billion to U.S. manufacturing and R&D, with a goal of creating more than 90,000 jobs. The company is also putting $300 million toward building a domestic semiconductor talent pipeline through apprenticeships, community college programs, and university partnerships.

Cramer raised Morris Chang’s criticism that U.S. chip manufacturing costs 50% more than in Taiwan. Mehrotra pushed back, pointing to Micron’s existing facility in Manassas, Virginia, which already produces advanced memory for automotive, defense, medical, and aerospace clients.

On the consumer side, Mehrotra acknowledged that AI data center demand is tightening supply for smartphone and PC memory, pushing consumer device costs higher. He said Micron keeps roughly 40% of its business in consumer markets to maintain diversification.

MU is at $970 as of July 2, with Q4 guidance of $50 billion in revenue and EPS of $31.00 on the horizon.