Key Takeaways
- Jim Cramer advised viewers to exercise patience on Micron (MU), suggesting the stock needs a more substantial pullback before becoming attractive again
- Shares have surged 335% in the last 12 months, currently hovering near $382, experiencing a 3.34% decline in today’s session
- The chipmaker posted Q2 FY2026 sales of $23.9 billion, a dramatic increase from the previous quarter’s $13.6 billion
- Management’s Q3 outlook targets approximately $33.5 billion in revenue, signaling robust ongoing momentum
- Industry forecasts suggest the HBM chip sector will expand from $35 billion to $100 billion within the next three years
During a recent Mad Money broadcast, Jim Cramer delivered his perspective on Micron Technology (MU), and the takeaway was straightforward: this isn’t the moment to jump in.
When a viewer inquired about Micron’s upside potential following its recent quarterly report, Cramer offered a cautious take. “Micron is digesting that huge move,” he explained, referencing the remarkable rally that elevated the company’s market capitalization toward the $500 billion mark. He made it clear he’d need to witness a correction significantly larger than the $18 decline already observed before considering an entry.
Cramer emphasized the stock “can do that” — referring to the potential for further downside — specifically due to the magnitude of its recent appreciation.
Cramer’s Previous Caution on Memory Chip Names
This cautious stance isn’t new territory for Cramer. On March 11, he highlighted memory semiconductor companies as overextended, even those he fundamentally favors. He mentioned Micron in the same breath as Western Digital, Seagate, and Sandisk, indicating all could become compelling purchases “on a big move down.” The catalyst he referenced at the time: a correction tied to crude oil price movements.
His perspective has remained consistent. Cramer recognizes Micron’s underlying strength — he simply prefers a more favorable entry point.
The optimistic thesis for Micron rests on undeniable financial performance. The semiconductor manufacturer recently delivered Q2 FY2026 revenue totaling $23.9 billion. The preceding quarter? Just $13.6 billion. That’s a genuine sequential acceleration.
For Q3, executives are projecting revenue near $33.5 billion, representing yet another substantial sequential gain of approximately $10 billion. Profit margins are expanding as well, buoyed by pricing power driven by tight supply conditions.
The primary growth catalyst centers on high-bandwidth memory, commonly called HBM — specialized chips essential for artificial intelligence workloads. The HBM addressable market stood at roughly $35 billion in early 2025. Micron’s forecast calls for that figure to reach $100 billion by 2028.
Cyclicality Remains a Lingering Concern
Yet despite this impressive growth trajectory, MU stock trades at merely 7.7 times forward earnings estimates. That compressed valuation isn’t accidental — it mirrors how the market has traditionally valued memory semiconductor companies. The sector is inherently cyclical. When memory chip pricing weakens, margins compress, profits decline, and share prices typically follow.
Both Wall Street analysts and company leadership point to several years of limited capacity additions, which should sustain elevated demand conditions. However, timing the precise inflection point of memory cycles has proven extraordinarily difficult.
Shares have climbed 335% over the trailing twelve months. The 52-week trading range extends from $61.54 to $471.34 — a dramatic span that illustrates the inherent volatility embedded in this security.
Cramer’s present position places him firmly in the “sidelines” category. He acknowledges Micron’s fundamental appeal but believes better value will emerge at lower price levels than current trading suggests.
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