Key Takeaways
- CNBC’s Jim Cramer advised viewers to wait for a more substantial decline in Micron (MU) before initiating positions, citing the stock’s elevated levels after a major rally
- Micron shares have surged 335% over the trailing twelve months, currently hovering near $382, down 3.34% in recent trading
- The company delivered Q2 FY2026 revenue of $23.9 billion, a significant increase from the previous quarter’s $13.6 billion
- Management’s Q3 outlook projects approximately $33.5 billion in revenue, signaling robust ongoing demand
- Industry forecasts suggest 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) during a recent Mad Money broadcast, delivering a cautious message: this isn’t the time to jump in.
When a viewer inquired about Micron’s growth potential following its recent quarterly report, Cramer offered a deliberate response. “Micron is digesting that huge move,” he explained, referencing the stock’s remarkable rally that propelled the company’s market capitalization toward $500 billion. He expressed interest in the shares only after seeing a decline significantly larger than the $18 drop already recorded.
Cramer noted the stock “can do that” — referring to a deeper pullback — specifically because the run-up has been so substantial.
Previous Caution on Memory Chip Sector
This represents a consistent theme in Cramer’s recent commentary. On March 11, he cautioned viewers that memory chip stocks had climbed too high, even those with solid fundamentals. He mentioned Micron together with Western Digital, Seagate, and Sandisk, suggesting all could become attractive “on a big move down.” At that time, he referenced potential oil price movements as a possible catalyst.
His current position remains aligned with that earlier assessment. Cramer acknowledges Micron’s strengths — he simply believes the entry price should be lower.
The fundamental case supporting Micron is compelling based on recent results. The chipmaker reported Q2 FY2026 revenue reaching $23.9 billion. The preceding quarter? Just $13.6 billion. That represents a dramatic acceleration.
For Q3, executives projected revenue approaching $33.5 billion, indicating another sequential gain of approximately $10 billion. Profit margins are expanding as well, benefiting from pricing power driven by tight supply conditions.
The primary catalyst is high-bandwidth memory, or HBM — specialized chips essential for artificial intelligence workloads. The HBM market stood at roughly $35 billion entering 2025. Micron’s outlook calls for that figure to reach $100 billion by 2028.
Cyclical Nature Presents Challenges
Yet despite these dynamics, MU commands a forward price-to-earnings ratio of merely 7.7 times. That compressed valuation isn’t accidental — it mirrors how the market has traditionally valued memory manufacturers. These businesses are inherently cyclical. When memory chip pricing weakens, margins contract, profits decline, and share prices typically follow.
Industry observers and company leadership highlight several years of limited supply growth, which should sustain elevated demand conditions. However, timing the eventual industry downturn remains extremely difficult.
Micron shares have climbed 335% during the past year. The 52-week trading range extends from $61.54 to $471.34 — a dramatic span that underscores the volatility characteristic of this stock.
Cramer’s present view places him firmly in a cautious posture. He recognizes Micron’s opportunity but prefers to pursue it at a more attractive valuation than current levels offer.
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