Micron inventory valuation is sitting about 33.8% above its truthful worth estimate proper now, in response to GuruFocus knowledge launched after the Micron 10-Ok submitting on October 9, 2026. The Micron inventory valuation hole comes from a GF Worth of $768.96 towards a $1,029 closing worth. On the identical time, the common one-year Micron inventory worth goal stands at $1,555.13, and this retains the Micron inventory forecast cut up between report earnings and an expensive share.
Micron Inventory Valuation: AI Development, Monetary Power, and Key Dangers
What The Micron 10-Ok Submitting Exhibits
The Micron 10-Ok submitting covers the fiscal 12 months that ended on September 3, 2026, and the numbers are big. Income hit $133.2 billion, up from $37.4 billion a 12 months earlier. Working revenue additionally jumped to $99.3 billion from $9.8 billion in 2025, whereas gross margin reached $107.5 billion. These outcomes matter quite a bit for the Micron inventory valuation, since they clarify why the shares ran so laborious this 12 months.
AI knowledge heart demand did a lot of the heavy lifting. Micron is ramping high-bandwidth reminiscence (HBM) for AI chips, with HBM4E subsequent in line, and it additionally launched its 1-gamma DRAM node constructed on EUV lithography. Chairman and CEO Sanjay Mehrotra acknowledged:
“Micron delivered report fiscal 2026 outcomes, and we count on a fair stronger fiscal 2027.”
Why GuruFocus Sees A 33.8% Valuation Hole
Micron holds a GF Rating of 93/100 proper now, however that rating solely tells half of the Micron inventory valuation story. Development scores 10/10, Monetary Power and Profitability get 9/10 every, and Momentum sits at 6/10. The weak spot is valuation, at simply 5/10, and that’s precisely the place the Micron inventory valuation hole comes from. By GuruFocus’ math, the share worth has run properly forward of what the enterprise is de facto value.
The rally explains a variety of it. On the time of writing, MU is up 260.53% 12 months so far and 435.02% over the previous 12 months. Even so, the inventory trades at a trailing P/E of solely 13.84, with EPS of $74.33, so the inventory valuation leans on actual earnings and never simply hype.
Micron Inventory Value Goal And Forecast
Wall Road reads the numbers very in a different way than GuruFocus. The $1,555.13 Micron inventory worth goal factors to about 51% upside from the $1,029 shut, whereas the GF Worth factors to a large drop. That cut up is the principle cause the Micron inventory valuation debate retains going proper now.
The near-term MU inventory forecast additionally seems sturdy on paper. Micron guided fiscal Q1 2027 income to $61.5 billion, plus or minus $1.5 billion, and administration stated it has already signed offers for many of its 2027 HBM provide. CFO Mark Murphy had this to say:
“Our stock ranges and provide stay extraordinarily tight and we count on DIO to say no within the coming quarters.”
There are some dangers to the Micron inventory valuation, too. The Micron 10-Ok submitting factors out that reminiscence chips transfer in cycles, and a requirement slowdown might push costs decrease quick. China’s Our on-line world Administration additionally barred crucial infrastructure operators from shopping for Micron merchandise again in Could 2023. On high of that, insiders offered $373.9 million in shares over the previous 12 months and purchased solely $7.8 million.
For now, the Micron inventory valuation hole stays extensive, and any valuation name will get its subsequent actual check with earnings, estimated for December 23, 2026. That report might transfer each the MU inventory forecast and the inventory worth goal. Micron additionally pays a $0.15 dividend, with an ex-date of October 14.
