Micron Technology has seen strong stock performance over the last year; however, how does it really stack up against memory and AI competitors that are swiftly expanding amid the data-center surge? A detailed examination shows impressive revenue growth over the last twelve months (45%) alongside healthy operating margins (32%), yet its free cash flow margins (11%) lag behind industry leaders. The relatively moderate valuation (P/E: 36.7) serves as a stabilizing factor, though future gains might be constrained if essential AI infrastructure continues to benefit pure-play companies.
A view of a building where the facilities of US semiconductor giant Micron is located in Shanghai on May 22, 2023. US semiconductor giant Micron has failed a national security review, China’s cybersecurity watchdog said on May 21, telling operators of “critical information infrastructure” to stop buying its products. (Photo by Hector RETAMAL / AFP) (Photo by HECTOR RETAMAL/AFP via Getty Images)
AFP via Getty Images
- MU’s operating margin of 32.5%, robust for the memory sector, is behind NVDA’s 58.8%, which showcases its stronghold in premium AI chip offerings.
- With a revenue growth rate of 45.4%, MU outstrips many rivals, indicating a recovery in the memory market, though still trailing NVDA’s AI-fueled market expansion.
- MU’s stock increase of 256.9% in the past 12 months, and a PE of 36.8 reflect positive sentiment regarding memory, although WDC’s superior returns underscore the impact of diverse catalysts in the storage market.
This is how Micron Technology compares in terms of size, valuation, and profitability with notable competitors.
For additional insights about Micron Technology, check out Buy or Sell MU Stock. Below, we contrast MU’s growth, margins, and valuation with competitors across several years.
Metrics
Trefis
Still uncertain about MU stock? Consider a diversified portfolio approach.
Multi-Asset Portfolios Offer More Upside With Less Risk
MORE FOR YOU
Individual investments can be volatile, but diversified assets tend to balance each other out. A multi-asset portfolio enables you to navigate fluctuations while seizing opportunities and minimizing risks.
The asset allocation framework utilized by Trefis’ Boston-based wealth management partner delivered positive results during the 2008-09 crisis when the S&P suffered losses exceeding 40%. Our partner’s strategy currently integrates Trefis’ High Quality Portfolio, which boasts a proven history of consistently outperforming its benchmarks that include all three indices: the S&P 500, S&P mid-cap, and Russell 2000.