Micron (MU, $50.60) beats earnings expectations, despite revenue miss; hint at chip market oversupply
Micron Technology reported adjusted earnings of $1.45 a share, higher than analysts’ expectations of $1.37 a share. The result also revealed a substantial decrease from the year-ago quarter’s $2.42 a share (as reported in MarketWatch)
Revenue fell to $6.64 billion from $8.27 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast revenue of $6.73 billion. (as reported in MarketWatch)
In July, Micron cautioned of possible oversupply in the chip market following COVID-19 pandemic-driven shortages. “Recently, the industry demand environment has weakened, and we are taking action to moderate our supply growth in fiscal 2023,” said Sanjay Mehrotra, Micron’s chief executive, in a statement issued in July. “We are confident about the long-term secular demand for memory and storage and are well positioned to deliver strong cross-cycle financial performance.”
In the latest statement, Mark Murphy, Micron’s chief financial officer, said, “Inventory levels are high and they’re going to be higher.” (as reported in MarketWatch). “They’ll be over 150 days, we believe. And again, it’s a function of this unprecedented period, and we’re doing what we can to affect future supply or future capacity, be in a position to work those inventories down.”
Mehrotra said that Micron intends to lower capital spending in fiscal 2023 by about $8 billion, or by more that 30%, with a 50% cut in spending on wafer-fab equipment.
Looking ahead, the chipmaker is expecting adjusted loss of 6 cents and net income of 14 cents a share on revenue of $4 billion to $4.5 billion for the fiscal first quarter. Analysts expected 69 cents a share on revenue of $5.71 billion.
Aroon Indicator for MU shows an upward move is likely
MU's Aroon Indicator triggered a bullish signal on July 01, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 290 similar instances where the Aroon Indicator showed a similar pattern. In of the 290 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MU advanced for three days, in of 335 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for MU moved out of overbought territory on June 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 48 similar instances where the indicator moved out of overbought territory. In of the 48 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on July 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on MU as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MU turned negative on June 29, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MU declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MU broke above its upper Bollinger Band on June 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 66, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MU’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (11.123) is normal, around the industry mean (18.127). P/E Ratio (22.415) is within average values for comparable stocks, (253.931). Projected Growth (PEG Ratio) (0.146) is also within normal values, averaging (1.768). Dividend Yield (0.001) settles around the average of (0.014) among similar stocks. P/S Ratio (12.516) is also within normal values, averaging (48.898).
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General Information
a manufacturer of advanced semiconductor solutions such as DRAMs, NAND flash memory, CMOS image sensors, other semiconductor components and memory modules
Industry Semiconductors
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