Is It Too Late To Consider Micron Technology (MU) After A 661% One Year Surge?
Is It Too Late To Consider Micron Technology (MU) After A 661% One Year Surge?
Publish Date: 2026-05-09 10:01:00
Source Domain: simplywall.st
- If you are wondering whether Micron Technology’s share price still reflects fair value after a strong run, the key question is what the current market price is really paying for.
- The stock last closed at US$646.47, with returns of 25.0% over 7 days, 71.2% over 30 days, 105.0% year to date, and a very large 1 year gain of 661.0% that is roughly 7x.
- Recent headlines have focused on Micron Technology’s position within the semiconductor industry and its role in supplying memory and storage for areas such as data centers and advanced computing. This backdrop helps frame why investors are paying close attention to the stock’s price moves and what they might imply for risk and potential reward.
- On Simply Wall St’s valuation framework Micron Technology scores 3 out of 6. The next sections will walk through how different valuation approaches view the stock, and then link those numbers back to the broader investment story.
Micron Technology delivered 661.0% returns over the last year. See how this stacks up to the rest of the Semiconductor industry.
Approach 1: Micron Technology Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model estimates what a stock could be worth by projecting the cash it might generate in the future and then discounting those cash flows back to today using a required return.
For Micron Technology, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month Free Cash Flow is about US$9.6b. Analyst and extrapolated estimates, expressed in today’s money, show discounted Free Cash Flow projections ranging from roughly US$32.5b in 2026 to about US$5.2b in 2035, with a specific projected Free Cash Flow of US$24.9b for 2030.
Combining these projections, the model arrives at an estimated intrinsic value of US$268.39 per share. Compared with the recent share price of US$646.47, this implies the stock is around 140.9% above the DCF estimate, which points to a rich valuation…
