AI Multi-Horizon Analysis
Short-term65% confidence
Bullish
Price at 1011.75 inside upper Bollinger (1030.71) and above all key EMAs; RSI 68.32 shows momentum but not extreme overbought. Volume elevated vs 20-day average.
Mid-term80% confidence
Bullish
Multi-quarter fundamental momentum intact; insider selling at highs is a caution but not material. Price above 50-day SMA and EMA stack.
Long-term85% confidence
Bullish
Q3 FY26 revenue and FCF each > entire FY25; D/E collapsed to 0.05 and cash up 159% in three quarters. Structural memory-cycle upswing intact.
Overall AI View92% confidence
Bullish
Explosive sequential revenue, margin, and FCF acceleration across the last three quarters with balance-sheet deleveraging; insider selling is modest relative to market cap but clustered near highs.
Detailed AI Fundamental Analysis
Business Snapshot
- Micron Technology (NYSE: MU, NASDAQ: CS) is a US-listed common stock, incorporated/listed since 1984 (CIK 0000723125), and one of the world's largest memory semiconductor manufacturers. No sector/industry breakdown was provided in the payload.
- The data covers fiscal periods ending 2025-08-28 (FY2025 full-year 10-K) and the first three quarters of FY2026 (10-Qs ending 2025-11-27, 2026-02-26, 2026-05-28). All figures are reported in USD.
- The fundamental picture is a violent, AI-driven memory up-cycle: Q3 FY2026 (quarter ended 2026-05-28) revenue of $41.456B alone exceeded the entire FY2025 revenue of $37.378B.
- Product mix, HBM/DRAM/NAND split, and forward guidance are not included in the payload — the analysis below sticks strictly to reported financials, insider filings, and daily market data.
Financial Trends
Revenue — accelerating at a historic pace:
- Sequential quarters: $13.643B (Q1 FY26) → $23.860B (Q2 FY26) → $41.456B (Q3 FY26).
- QoQ growth: +74.9% Q2 vs Q1; +73.7% Q3 vs Q2.
- Latest quarter vs the oldest period in the set (FY25 full year): $41.456B vs $37.378B — a single quarter is now 111% of the prior full fiscal year. Growth is accelerating, not just elevated.
Margins — expansion is compounding, not flattening:
- Gross margin: 39.79% (FY25) → 56.04% (Q1) → 74.41% (Q2) → 84.56% (Q3). Incremental expansion: +18.4 pts (Q2) and +10.2 pts (Q3).
- Operating margin: 26.14% → 44.98% → 67.62% → 80.37%.
- Net margin: 22.84% → 38.41% → 57.77% → 68.13%.
- Diluted EPS: $7.59 (FY25) → $4.60 → $12.07 → $24.67. Sequential EPS grew +104% Q3 vs Q2.
Cash flow — FCF inflected from $1.7B to $26.1B per period:
- Operating cash flow: $8.411B → $20.314B → $45.702B (Q3 vs Q2: +125%).
- CapEx is rising but at a slower rate than cash generation: $5.389B → $11.776B → $19.602B (Q3 vs Q2: +66%).
- Free cash flow: $3.022B → $8.538B → $26.100B (Q2 vs Q1: +183%; Q3 vs Q2: +206%).
- Cash & equivalents ended Q3 at $24.995B vs $9.642B four periods ago — +159% in three quarters.
Balance sheet — deleveraging aggressively while asset base expands:
- Total assets: $82.798B → $85.971B → $101.509B → $134.112B (+62% vs four periods ago).
- Shareholders' equity: $54.165B → $58.806B → $72.459B → $100.724B (+86%).
- Debt-to-equity collapsed from 0.26 → 0.19 → 0.13 → 0.05.
- Current ratio improved 2.52 → 2.46 → 2.90 → 3.42; working capital nearly tripled to $47.249B.
- Cash from financing was deeply negative each period (-$10.646B latest), implying debt paydown/leverage reduction (buyback attribution not verifiable in payload).
- Inventory stayed essentially flat ($8.355B → $8.567B) while revenue tripled — an extreme efficiency/supply-constrained signal.
Financial Health
- Q3 FY2026 is a clean, across-the-board blowout: $28.243B net income, 68.13% net margin, $26.1B quarterly FCF. There is no line-item deterioration in the latest period; momentum is still inflecting upward.
- The balance sheet has flipped from moderately levered (0.26 D/E) to conservatively financed (0.05 D/E) with $25B cash — solvency and liquidity risk are effectively gone.
- The single biggest risk is the sustainability of the margin regime. 84.6% gross / 68% net margins are extreme for a historically cyclical memory producer; inventory flat against a revenue explosion indicates the company is selling into rationed supply, which is bullish near-term but invites mean-reversion once capacity catches up.
- Approximate market cap at $1,011.75 and 1.129B shares outstanding: ~$1.14 trillion. Summing net income of the four reported periods ($28.243B + $13.785B + $5.240B + $8.539B = $55.807B, a mix of 9 months FY26 + full FY25, not a pure TTM) gives a trailing multiple of roughly 20–21x — but with earnings this steeply accelerating, static multiples understate the forward earnings power. No analyst targets or forward guidance are present in the payload.
Insider Activity
- Insider sentiment for 2026-05-20 → 2026-08-18: Neutral (-10).
- Buys: $0 across 3 transactions. Sells: $132,752,609 across 120 transactions. Net: -$132.75M, a one-way seller's tape.
- Dense cluster on 2026-07-24: CEO Sanjay Mehrotra executed two large filings — roughly ~$8.3M and ~$15.7M worth of sells at prices ranging $906.48–$965.85, plus a separate ~$24M combined batch across many small lots (typical 10b5-1 pattern).
- 2026-07-23: Director Scott R. Allen sold 879 shares at $1,000.00 for $879,000.
- Interpretation: every insider transaction in the window is a sell, and the selling is clustered near $900–$1,000 — right in the midst of the parabolic advance. Total dollar volume ($132.75M) is trivial relative to the ~$1.14T market cap (~0.01%), so it is not a liquidity threat, but the complete absence of buys and the timing at price highs is a caution flag worth monitoring going into the next reporting cycle.
