Key Takeaways
- Jim Cramer advised investors to exercise patience with Micron (MU), suggesting the stock should retreat further from current levels following its extraordinary rally
- The semiconductor maker has climbed 335% over the trailing twelve months, currently hovering near $382 after declining 3.34% in today’s session
- Second quarter fiscal 2026 revenue reached $23.9 billion, marking a substantial increase from the previous quarter’s $13.6 billion
- Management’s third quarter outlook targets approximately $33.5 billion in revenue, signaling sustained momentum in customer demand
- Industry analysts forecast the high-bandwidth memory segment will expand from $35 billion to $100 billion over the next three years through 2028
Jim Cramer shared his perspective on Micron Technology (MU) during a Mad Money broadcast, delivering a straightforward recommendation: exercise caution at these price levels.
When a viewer inquired about Micron’s potential following its recent quarterly report, Cramer offered a thoughtful assessment. “Micron is digesting that huge move,” he explained, referencing the stock’s remarkable ascent that brought the company’s market capitalization near $500 billion. He stated he would prefer to see the stock decline substantially beyond the $18 it had already shed before considering a position.
Cramer emphasized the stock “can do that” — meaning experience additional downside — specifically because of the magnitude of its prior advance.
Previous Caution on Memory Chip Names
Cramer’s current stance echoes earlier commentary. On March 11, he highlighted memory semiconductor stocks as overextended, even among companies he finds fundamentally attractive. He mentioned Micron along with Western Digital, Seagate, and Sandisk, indicating all could present buying opportunities “on a big move down.” He referenced potential oil price movements as a possible catalyst for such a decline.
His viewpoint remains consistent. Cramer recognizes Micron’s merits while preferring a more favorable entry price.
The fundamental case supporting Micron carries considerable weight. The company recently delivered Q2 FY2026 revenue totaling $23.9 billion. The preceding quarter generated $13.6 billion. The sequential acceleration is striking.
For the third quarter, leadership projects revenue approaching $33.5 billion, representing another sequential gain near $10 billion. Profit margins continue expanding as strong demand enables better pricing power across Micron’s product portfolio.
The primary growth catalyst centers on high-bandwidth memory, commonly called HBM — specialized chips essential for artificial intelligence workloads. The HBM segment stood at approximately $35 billion entering 2025. Micron forecasts this market reaching $100 billion by the end of 2028.
Cyclical Dynamics Present Challenges
Despite robust fundamentals, MU shares trade at merely 7.7 times projected earnings. This compressed valuation reflects longstanding investor treatment of memory chip manufacturers. The sector operates cyclically. During periods when memory chip pricing weakens, profitability contracts, earnings decline, and share prices typically follow.
Industry observers and company executives cite multiple years of limited supply growth, which should support elevated pricing for the foreseeable future. Pinpointing when the cycle shifts remains extremely difficult.
Micron has surged 335% during the past year. The 52-week trading range spans from $61.54 to $471.34 — illustrating the significant price swings characteristic of this stock.
Cramer’s present position places him among those advocating patience. He views Micron as offering superior value at a reduced price point compared to current trading levels.
