For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Micron (MU) ten years ago? It may not have been easy to hold on to MU for all that time, but if you did, how much would your investment be worth today?
Micron's Business In-Depth
With that in mind, let's take a look at Micron's main business drivers.
Idaho-based Micron Technology has established itself as one of the leading worldwide providers of semiconductor memory solutions.
Through global brands, namely Micron, Crucial and Ballistix, Micron manufactures and markets high-performance memory and storage technologies including Dynamic Random Access Memory (DRAM), NAND flash memory, NOR Flash, 3D XPoint memory and other technologies. Its solutions are used in leading-edge computing, consumer, networking and mobile products.
A major portion of the revenues is derived from DRAM sales. The company's mission is to be the most efficient and innovative global provider of semiconductor memory solutions.
Micron reported revenues of $25.1 billion in fiscal 2024. The company has four reportable segments:
Compute and Networking Business Unit (CNBU): The unit comprises of DRAM and NOR Flash products that are sold to the computer, networking, graphics, and cloud server markets, and NAND Flash products which are sold into the networking market. CNBU delivered revenues of $9.51 billion (38% of total revenues) in fiscal 2024.
Mobile Business Unit (MBU): The unit comprises Micron’s discrete DRAM, discrete NAND and managed NAND (including eMMC and universal flash storage (UFS) solutions) products that are sold to smartphone and other mobile-device markets. MBU generated revenues of $6.35 billion (25%) in fiscal 2024.
Storage Business Unit (SBU): The unit accounts for solid state drives (SSDs) and component-level solutions sold into enterprise and cloud, client and consumer storage markets as well as other discrete storage products sold in component and wafer forms to the removable storage markets. SBU’s revenues grossed $4.59 billion (18%) in fiscal 2024.
Embedded Business Unit (EBU): The unit includes Micron’s discrete DRAM, discrete NAND, managed NAND and NOR products, which are sold to the automotive, industrial and consumer markets. EBU’s revenues logged $4.61 billion (19%) in fiscal 2024.
The company struggles with intense competition from Intel, Samsung Electronics, SK Hynix, Toshiba Memory and Western Digital Corporation.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Micron a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2015 would be worth $3,689.36, or a 268.94% gain, as of May 21, 2025. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 179.44% and the price of gold went up 162.41% over the same time frame.
Analysts are anticipating more upside for MU.
Micron’s latest quarterly performance underscores its strategic positioning in the rapidly expanding AI-driven memory and storage markets. The positive impact of inventory improvement across multiple end markets is adding to the top-line growth. Surging demand for HBM and robust DRAM pricing recovery will aid significant revenue and earnings growth in coming quarters. Its solid financials, positive free cash flow, and strong balance sheet provide the flexibility to invest in growth initiatives while enhancing shareholder value. Its long-term customer agreements and expanding AI partnerships reduce volatility and enhance revenue visibility. Nonetheless, weakness in NAND pricing due to oversupply conditions and slower-than-expected demand recovery might hurt overall financial performance. An escalating trade war is another concern.
The stock has jumped 39.72% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2025; the consensus estimate has moved up as well.
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Micron Technology, Inc. (MU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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