TLDR
- Jim Cramer maintains a bullish stance on Micron following a stock decline triggered by Samsung’s disappointing buyback plan
- Fiscal Q3 results showed Micron revenue hitting $41.46 billionāa 346% year-over-year surgeāwhile non-GAAP EPS of $25.11 exceeded forecasts by 24%
- The company has secured $100 billion in AI-related contracted revenue extending through 2030, with HBM and DRAM capacity fully committed until 2027
- At a forward P/E around 6, Micron trades at a steep discount compared to Intel’s 68.97 and AMD’s 61
- Cramer highlighted Micron as his preferred choice among four critical memory chip companies, including SanDisk, Seagate, and Western Digital
Jim Cramer continues to champion Micron Technology, arguing the memory chipmaker represents exceptional value despite stock fluctuations driven by developments among its South Korean competitors.
While Micron shares have climbed approximately 254% during 2026, a recent downturn has drawn investor scrutiny. According to Cramer, the decline stemmed from factors unrelated to Micron’s actual performance.
The catalyst was Samsung’s shareholder compensation package, which market participants deemed insufficient when measured against SK Hynix’s earlier commitment. SK Hynix revealed intentions to repurchase and eliminate around $28.6 billion of its shares between August 20 and November 19.
Samsung had been anticipated to announce returns surpassing $72 billion. The actual figure came nowhere near expectations.
“The Samsung buyback was regarded as not good enough,” Cramer explained, describing the market’s response as “chimerical” considering Micron’s impressive financial performance.
Micron’s Financial Results Speak Volumes
Micron delivered fiscal Q3 revenue of $41.46 billion, representing a 346% year-over-year increase. Non-GAAP earnings per share reached $25.11, surpassing analyst consensus by 23.8%. Non-GAAP gross margin achieved an all-time high of 84.9%, compared to 39% in the prior year.
The chipmaker holds $22 billion in customer deposits from 16 strategic partners, secured through take-or-pay agreements with pricing floor protections. Total contracted AI revenue extending through 2030 amounts to $100 billion.
Both HBM and DRAM production capacity is completely booked through 2027. AI data center facilities are expected to account for approximately 70% of worldwide memory chip output in 2026.
Cramer identified Micron along with SanDisk, Seagate, and Western Digital as four memory chip manufacturers he considers “indispensable” in today’s market. He connected the sector’s momentum to remarks from Elon Musk, who stated during SpaceX’s Q2 earnings discussion that memory constraints have become the primary limitation for AI data center expansion.
“While I acknowledge that I am not early, I do not think I am late,” Cramer shared with his audience.
The Samsung Connection Explained
Samsung’s influence on Micron extends beyond a single underwhelming buyback announcement. Samsung, SK Hynix, and Micron collectively dominate roughly 90% of worldwide DRAM production. Market participants interpret developments at any one company as indicative of industry-wide trends.
Samsung also initiated mass production of HBM4 chips in February 2026, establishing a lead over competitors. Micron continues to focus primarily on HBM3E shipments. This technological differential provides some market observers grounds for concern regarding Micron’s competitive positioning.
An additional challenge exists in regulatory constraints. Micron’s CHIPS Act funding agreement prohibits substantial share repurchase programs until December 9, 2026. Samsung and SK Hynix face no such restrictions and can deploy billions toward buybacks. Micron cannot.
Nevertheless, institutional capital has been flowing into Micron. Hedge fund ownership expanded from 154 to 184 funds between Q1 and Q2. Coatue Management enlarged its Micron position by 1,794% to reach $3.6 billion. George Soros’ fund amplified its holdings nearly eightfold during Q2.
Micron’s forward price-to-earnings ratio stands at approximately 6, contrasting sharply with Intel’s 68.97 and AMD’s 61. Cramer toured Micron’s Boise, Idaho manufacturing campus and emerged convinced the demand trajectory is legitimate. The company has pledged over $250 billion through 2035 for domestic production expansion.
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