Key Takeaways
- Jim Cramer advised investors to exercise patience with Micron (MU), suggesting the current price remains too elevated following an extraordinary rally
- The stock has surged 335% in the past twelve months, trading near $382 with a 3.34% daily decline
- Micron’s Q2 FY2026 revenue reached $23.9 billion, a significant jump from the previous quarter’s $13.6 billion
- The company forecasts Q3 revenue of approximately $33.5 billion, indicating robust ongoing demand
- Industry analysts project the high-bandwidth memory (HBM) sector will expand from $35 billion to $100 billion by 2028
Jim Cramer shared his perspective on Micron Technology (MU) in a recent Mad Money appearance, delivering a straightforward recommendation: exercise restraint before jumping in.
When a viewer inquired about Micron’s potential for additional gains following its recent quarterly report, Cramer offered a cautious take. “Micron is digesting that huge move,” he explained, referencing the stock’s remarkable ascent that elevated the company’s market capitalization toward $500 billion. He expressed his preference for waiting until the shares decline significantly more than the $18 they had already retreated before considering an entry.
Cramer emphasized the stock “can do that” — referring to the possibility of further downside — specifically because of its already substantial appreciation.
Cramer’s Previous Caution on Memory Chip Stocks
This perspective isn’t new territory for Cramer. On March 11, he cautioned that memory chip stocks had climbed too far, even those he fundamentally favors. He mentioned Micron along with Western Digital, Seagate, and Sandisk, indicating all could present buying opportunities “on a big move down.” At that time, he referenced a potential catalyst: a pullback connected to oil price movements.
His viewpoint remains consistent. Cramer recognizes Micron’s fundamental strength — he simply prefers a more attractive entry price.
The optimistic thesis for Micron is compelling when examining the financials. The semiconductor manufacturer recently delivered Q2 FY2026 revenue of $23.9 billion. The preceding quarter registered $13.6 billion. That represents a dramatic acceleration.
Management projects Q3 revenue near $33.5 billion, representing another sequential increase of approximately $10 billion. Gross profit margins continue expanding as strong demand enables Micron to command higher pricing.
The fundamental catalyst is high-bandwidth memory, or HBM — the specialized chip architecture essential for AI computational workloads. The HBM market stood at roughly $35 billion entering 2025. Micron anticipates this segment will reach $100 billion by 2028.
The Cyclical Risk Is Real
Neverthstanding these positives, MU currently trades at merely 7.7 times forward earnings. That compressed valuation isn’t accidental — it mirrors how the market has historically valued memory semiconductor companies. The sector operates cyclically. When memory chip pricing softens, margins compress, earnings decline, and share prices typically follow.
Industry analysts and company leadership highlight several years of limited supply growth, which should sustain elevated demand in the near term. However, accurately forecasting when the cycle will reverse remains extremely challenging.
The stock has appreciated 335% over the trailing year. Its 52-week trading range extends from $61.54 to $471.34 — a dramatic spread that illustrates the volatility inherent in this equity.
Cramer’s present position places him firmly in the “wait and watch” category. He perceives greater value potential in Micron at prices below current trading levels.
