Micron Stock Is Up 311% Over the Last Year. Here's Why It's Still a Cheap Buy.

MrDecoder · 2026-03-25T06:44:23+00:00

Micron Technology has shown remarkable growth, driven by AI memory demand, with a 311% increase over the past year. Despite its rising stock price, it remains undervalued compared to industry peers, trading at low P/E ratios, making it an attractive option for tech investors.

MrDecoder

2026-03-25 06:44:23

Abstract generation in progress

The tech sector has been in a slump lately, and **Micron Technology **(MU 2.28%) is one of the few bright spots, thanks to surging demand for artificial intelligence (AI) memory. It’s up 48% on the year and an even more impressive 311% over the last year, as of March 20.

After those kinds of returns, it’d be reasonable to assume that Micron is now overvalued. But when you review the numbers, Micron stock looks severely undervalued.

Image source: Micron Technology.

Micron recently reported fantastic results for the second quarter of its 2026 fiscal year, which ended Feb. 26, 2026. Revenue jumped to $23.9 billion, a 75% increase from the previous quarter and a 196% increase year over year. It delivered revenue increases in all four of its business units, while increasing gross margin to 74%, up from 56% in the previous quarter.

Not only did Micron significantly increase revenue, but it also retained a larger share of that money, boosting its free cash flow.

Even with Micron’s share price rising, it trades at 20 times trailing earnings. The tech-heavy **Nasdaq-100 **index, in comparison, trades at an average of 35 times earnings, indicating that Micron is still more affordably priced than many other tech stocks.

The price-to-earnings (P/E) ratio is also backward-looking, which means it may not work well for valuing rapidly growing companies. With these companies, it can be better to take a forward-looking approach. In Micron’s case, the memory company trades at just 7 times forward earnings. Nvidia, the market’s largest company, trades at 21 times forward earnings.

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NASDAQ: MU

Micron Technology

Today’s Change

(-2.28%) $-9.21

Current Price

$395.14

Key Data Points

Market Cap

$456B

Day’s Range

$388.91 - $404.84

52wk Range

$61.54 - $471.34

Volume

1.6M

Avg Vol

37M

Gross Margin

58.54%

Dividend Yield

0.11%

A low P/E ratio or forward P/E ratio doesn’t guarantee a winning investment. Micron could underperform if memory demand slows, although that doesn’t seem likely at present. Still, with its recent results and cheap valuation, Micron is well worth considering for tech investors.

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