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Micron Technology (MU) shares have declined by 7.1% in the last day and are now priced at $218.03. We don’t believe there is much to worry about regarding MU stock due to its overall Strong operational performance and financial stability. Despite the stock’s High valuation, we still think that it is Fairly Priced. Micron is benefiting from an expanding deployment of large-scale AI data centers, which is fueling strong demand for high-bandwidth memory used in AI servers. This trend has been helping drive HBM memory volumes as well as average selling prices for Micron’s products. Here is our evaluation: The asset allocation strategies of Trefis’ wealth management partner near Boston delivered favorable returns during the 2008-09 timeframe when the S&P experienced losses exceeding 40%. Our partner has integrated the Trefis HQ Portfolio into this asset allocation framework to enhance client returns while minimizing risk in comparison to the benchmark index; providing a smoother experience as shown by HQ Portfolio performance metrics. Let’s delve into the details of each assessed factor, but first, for a quick background: With a market cap of $245 Bil, Micron Technology offers memory and storage solutions across computing, mobile, storage, and embedded markets, focusing on high-speed, low-latency DRAM semiconductor devices. MORE FOR YOU [1] Valuation Appears High This table illustrates how MU is valued against the broader market. For additional information see: MU Valuation Ratios [2] Growth Is Extremely Strong Micron Technology has experienced its revenue increase at an average rate of 20.3% over the previous 3 years Its revenues have risen 49% from $25 Bil to $37 Bil in the last 12 months Furthermore, its quarterly revenues increased by 46.0% to $11 Bil in the newest quarter from $7.8 Bil a year prior. This table demonstrates how MU is growing in comparison to the broader market. For more information see: MU Revenue Comparison [3] Profitability Seems Very Strong MU's operating income over the last 12 months was $9.8 Bil, reflecting an operating margin of 26.2% With a cash flow margin of 46.9%, it generated nearly $18 Bil in operating cash flow within this timeframe For the same interval, MU produced approximately $8.5 Bil in net income, indicating a net margin of roughly 22.8% This table outlines how MU's profitability compares to the broader market. For more details see: MU Operating Income Comparison [4] Financial Stability Appears Very Strong MU had $15 Bil in debt at the close of the latest quarter, while its current Market Cap stands at $245 Bil. This results in a Debt-to-Equity Ratio of 6.4% MU’s Cash (inclusive of cash equivalents) accounts for $10 Bil of $83 Bil total Assets. This produces a Cash-to-Assets Ratio of 12.4% [5] Downturn Resilience Is Very Poor MU has performed significantly worse than the S&P 500 index during various economic recessions. We evaluate this by considering both (a) the extent to which the stock fell and (b) how swiftly it rebounded. 2022 Inflation Shock MU shares declined by 49.8% from a peak of $97.36 on January 14, 2022, to $48.88 on September 26, 2022, compared to a peak-to-trough drop of 25.4% for the S&P 500. Nonetheless, the stock completely recovered to its pre-Crisis high by March 7, 2024 Since that time, the stock surged to a peak of $234.70 on November 3, 2025, and is presently trading at $218.03 2020 Covid Pandemic MU shares fell by 42.5% from a high of $59.99 on February 19, 2020, to $34.47 on March 16, 2020, compared to a peak-to-trough decline of 33.9% for the S&P 500. Nonetheless, the stock fully rebounded to its pre-Crisis peak by November 16, 2020 2008 Global Financial Crisis MU shares declined by 88.1% from a high of $14.23 on January 12, 2007, to $1.69 on November 20, 2008, compared to a peak-to-trough drop of 56.8% for the S&P 500. Nonetheless, the stock completely recovered to its pre-Crisis peak by June 27, 2013 However, the risk extends beyond major market crashes. Stocks can decline even in favorable market conditions – consider factors like earnings announcements, business updates, and outlook adjustments. Check out MU Dip Buyer Analyses to observe how the stock has bounced back from significant drops in the past. The Trefis High Quality (HQ) Portfolio, featuring a collection of 30 stocks, has a history of significantly outperforming its benchmark which encompasses all three indices – S&P 500, Russell, and S&P midcap. What explains this? Collectively, HQ Portfolio stocks have generated superior returns with reduced risk in relation to the benchmark index; offering a steadier performance as illustrated by HQ Portfolio performance metrics.
