Key Takeaways
- During a Mad Money segment, Jim Cramer advised investors to exercise patience with Micron (MU) stock, suggesting the current price remains elevated following its extraordinary rally
- Micron shares have skyrocketed 335% in the past year, presently hovering near $382, representing a 3.34% daily decline
- The company disclosed Q2 FY2026 revenues reaching $23.9 billion, a substantial increase from the previous quarter’s $13.6 billion
- Management’s Q3 outlook forecasts approximately $33.5 billion in revenue, signaling sustained robust demand
- Industry projections show the high-bandwidth memory (HBM) sector expanding from $35 billion to $100 billion by 2028
During a recent Mad Money broadcast, Jim Cramer shared his perspective on Micron Technology (MU), delivering a straightforward recommendation: this isn’t the moment to jump in.
When a viewer inquired about Micron’s growth potential following its recent earnings announcement, Cramer offered a cautious take. “Micron is digesting that huge move,” he explained, referencing the stock’s remarkable ascent that propelled the company’s market capitalization toward $500 billion. He expressed his preference to witness a decline significantly larger than the $18 correction already observed before considering an entry.
Cramer noted the stock “can do that” — indicating further downside — specifically because of the substantial gains already recorded.
Previous Concerns About Memory Sector Valuations
This represents a consistent theme in Cramer’s commentary. On March 11, he highlighted memory sector stocks as overextended, including names he fundamentally appreciates. He placed Micron in the same category as Western Digital, Seagate, and Sandisk, suggesting all could present buying opportunities “on a big move down.” At that time, he referenced oil price movements as a potential catalyst for such declines.
His perspective remains unchanged. Cramer acknowledges Micron’s fundamental strength — he simply prefers a more attractive valuation.
The bullish narrative surrounding Micron is supported by impressive financial performance. The company recently reported Q2 FY2026 revenues of $23.9 billion. For context, the preceding quarter delivered $13.6 billion. That’s a genuine 76% sequential increase.
For Q3, management provided guidance targeting approximately $33.5 billion in revenue, representing another sequential gain near $10 billion. Gross margin expansion is also underway as strong demand enables Micron to command premium pricing.
The fundamental catalyst is high-bandwidth memory, or HBM — specialized chips essential for AI computing infrastructure. The HBM market stood at approximately $35 billion entering 2025. Micron projects this market reaching $100 billion by 2028.
Cyclicality Remains a Legitimate Concern
Despite these compelling growth dynamics, MU trades at merely 7.7 times forward earnings. This compressed valuation multiple isn’t accidental — it mirrors how investors have historically valued memory semiconductor companies. The industry is inherently cyclical. When memory chip pricing weakens, profit margins compress, earnings decline, and share prices typically follow.
Both Wall Street analysts and company management highlight several years of supply constraints ahead, which should sustain elevated demand conditions for the foreseeable future. However, timing cyclical inflection points with precision remains extraordinarily challenging.
The stock has appreciated 335% over the trailing twelve months. Its 52-week trading range extends from $61.54 to $471.34 — a breadth that illustrates the volatility inherent in this equity.
Cramer’s present position places him firmly in the “wait for better value” category. He recognizes Micron’s appeal at a more reasonable price than where shares currently trade.
