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Micron Technology: Margins Have Not Peaked Yet

Aug. 04, 2021 11:31 AM ETMicron Technology, Inc. (MU)32 Comments
The Asian Investor profile picture
The Asian Investor


  • Micron will now start to pay a cash dividend.
  • The dividend is, however, not a good reason to buy the stock. Micron is a buy based on its expected revenue growth and gross margin expansion.
  • Micron is rolling out new 176-layer NAND products which should help accelerate top line growth next year.
  • Micron is still undervalued based on its growth potential.

Sunrise in spring at Micron Technology
knowlesgallery/iStock Editorial via Getty Images

Micron Technology (NASDAQ:MU) signaled a shift in its dividend policy when it announced the introduction of a cash dividend this week. As a growth company, however, Micron's revenue acceleration, gross margin growth and multiple expansion are better reasons

Micron Technology Revenue and Gross Profit Margin
Data by YCharts

Micron stock price and PE ratio
Data by YCharts

This article was written by

The Asian Investor profile picture
I look for high-risk, high-reward situations. Five largest portfolio holdings: Bitcoin, SoFi, Alibaba, PayPal, Western Alliance. Early buyer of cryptocurrencies. I live in Thailand :)

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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