Is Micron (MU) Stock a Buy After Its Record Quarter?

TLDR

• Micron posted record fourth-quarter earnings, with adjusted EPS of $33.42, crushing last year’s $3.03.
• Revenue hit $54 billion, up 379% year-over-year, beating estimates of $51 billion.
• Shares rose just 0.4% in premarket trading despite the blowout numbers.
• Micron now has 26 multi-year supply agreements covering about a third of its revenue through 2030.
• Analysts like Cantor Fitzgerald’s C.J. Muse call the stock “too cheap to ignore” given its low forward P/E.

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Micron Technology delivered one of its best quarters ever on Wednesday. The memory chip maker posted adjusted earnings per share of $33.42, up from just $3.03 a year ago.

Micron Technology, Inc., MU

Revenue came in at $54 billion for the quarter, up 379% from last year. That topped Wall Street’s estimate of $51 billion.

Despite the huge beat, Micron’s stock barely moved. Shares were up only 0.4% in premarket trading on Thursday.

MICRON $MU Q4’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $54.23B (Est. $51.07B) 🟢; +379% YoY
🔹 Adj. EPS: $33.42 (Est. $31.61) 🟢
🔹 Adj. Gross Margin: 87.0% (Est. 86.1%) 🟢

Q1 FY27 Guide:
🔹 Revenue: $61.5B ± $1.5B (Est. $57.02B) 🟢
🔹 Adj. EPS: $38.15 ± $1.00 (Est. $35.40) 🟢
🔹… pic.twitter.com/DvLalHRPYe

— Wall St Engine (@wallstengine) September 30, 2026

The muted reaction shows just how skeptical investors remain about the memory chip cycle. Micron trades at a forward price-to-earnings ratio of just 6.6, far below the S&P 500’s 18.5.

CEO Sanjay Mehrotra struck an upbeat tone on the earnings call. He said supply and demand conditions for memory and storage are expected to tighten further in fiscal 2027 and 2028.

Record Numbers, Old Doubts

Gross margin hit 87% for the quarter, a record for Micron. Sales growth also blew past expectations.

For cautious investors, those numbers look a lot like a peak. Micron’s own guidance calls for sales growth and gross margin to slip slightly in the first quarter.

Memory chips have always been a boom-and-bust business. Prices and inventories swing wildly, and investors have been burned before by buying at the top.

Demand from AI data centers is driving much of the current surge. Data center spending is pushing past a trillion dollars a year, and much of that money goes toward memory and storage chips.

The shortage has even spilled into consumer electronics, where price hikes became common through 2026. New factories from Micron and rivals SK Hynix and Samsung aren’t expected to open until mid-2027.

Betting on Longer Contracts

Micron is trying to smooth out its usual boom-bust pattern. The company now has 26 multi-year supply agreements, up from 16 last quarter.

These deals cover roughly a third of Micron’s revenue through 2030. Unlike typical one-year contracts, they include price floors, high ceilings, and customer deposits.

Mehrotra said these agreements give the company more predictable financial results going forward. Portfolio manager Hendi Susanto of Gabelli Funds said the current cycle looks different because hyperscalers are locking in supply years ahead.

Still, Wall Street wants proof before changing its view. After the last earnings report, analysts raised estimates and price targets, and the stock jumped 16%. Those gains have since faded.

Micron’s cash position has also improved sharply. Free cash flow hit $59 billion for the fiscal year that just ended.

The company used that cash to pay down $10 billion in debt, leaving just $5 billion remaining. It also started a share buyback program.

Wall Street expects free cash flow to reach $129 billion in the new fiscal year. Cantor Fitzgerald’s C.J. Muse said Micron trades at just 5.6 times his 2027 EPS estimate and 4.5 times his 2028 estimate.

Muse called the quarter “about as straight down the fairway as one could have hoped.” He expects aggressive buybacks to begin in December.