Micron Technology, Inc. (MU) Stock Analysis

Micron Technology’s primary competitive advantages stem from its technology leadership, manufacturing scale, and product focus. The company is a top-three global supplier of DRAM and NAND memory, competing directly with Samsung and SK Hynix. Micron’s early adoption of advanced nodes—such as being first to ship 1-gamma DRAM and ramping G9 NAND—enables lower production costs and higher performance, supporting gross margins of 40% in FY25, up from 22% the prior year.

Micron’s high-bandwidth memory (HBM) and low-power DRAM (LPDDR5) are critical for AI servers, where demand is surging. In FY25, HBM, high-capacity DIMMs, and LP server DRAM generated $10 billion in revenue, a fivefold increase year-over-year. This positions Micron as a key supplier to hyperscale data centers, with data center revenue comprising 56% of total sales and gross margins of 52%.

Manufacturing scale and geographic diversity—spanning the U.S., Asia, and Europe—reduce supply chain risk and support cost competitiveness. Micron’s R&D intensity (10% of revenue in FY25) underpins rapid innovation cycles, while its customer-centric culture and direct engagement with leading OEMs foster sticky relationships.

Relative to Samsung and SK Hynix, Micron’s U.S. domicile and access to CHIPS Act incentives provide strategic insulation from geopolitical risk and support ongoing capital investment. However, the company remains exposed to cyclical pricing, technology migration risks, and concentrated customer demand.