Key Takeaways
- Jim Cramer advised viewers to remain patient with Micron (MU), suggesting the stock needs to fall significantly more before becoming attractive at current valuations
- Micron has surged 335% in the past year, with shares trading near $382, declining 3.34% in the session
- The company delivered Q2 FY2026 revenue of $23.9 billion, a substantial increase from the previous quarter’s $13.6 billion
- Management forecasts Q3 revenue around $33.5 billion, signaling robust ongoing demand
- The high-bandwidth memory sector is expected to expand from $35 billion to $100 billion by 2028
During a recent episode of Mad Money, Jim Cramer offered his perspective on Micron Technology (MU), delivering a straightforward warning: this isn’t the time to jump in.
When a viewer inquired about Micron’s growth potential following its recent earnings report, Cramer responded cautiously. “Micron is digesting that huge move,” he explained, referencing the massive rally that brought the company’s market capitalization near the $500 billion mark. He emphasized wanting to see a decline significantly larger than the $18 drop already experienced before considering an entry point.
Cramer suggested the stock “can do that” — referring to a more substantial pullback — specifically because of its extraordinary recent performance.
Cramer’s Consistent Stance on Memory Chip Stocks
This cautious approach isn’t new territory for Cramer. In early March, specifically on March 11, he warned that memory chip stocks had climbed too high, even his preferred names. He mentioned Micron along with Western Digital, Seagate, and Sandisk, noting all could become attractive “on a big move down.” At that time, he connected potential weakness to oil price movements.
His current perspective mirrors that earlier assessment. Cramer recognizes Micron’s fundamental strength — he simply wants a better entry price.
The fundamental argument supporting Micron is compelling. The company recently reported Q2 FY2026 revenue reaching $23.9 billion. Compare that to the prior quarter’s $13.6 billion. That represents genuine acceleration.
For Q3, executives provided guidance targeting approximately $33.5 billion in revenue, suggesting another sequential gain of about $10 billion. Gross profit margins are expanding as well, driven by pricing power from elevated demand.
The primary catalyst is high-bandwidth memory, or HBM — specialized chips essential for AI workloads. The HBM market stood at approximately $35 billion in early 2025. Micron projects this market reaching $100 billion within three years.
Cyclical Nature Remains a Concern
Yet despite these impressive metrics, MU shares trade at merely 7.7 times forward earnings. This compressed valuation multiple isn’t accidental — it captures how the market has traditionally priced memory chip manufacturers. The industry is inherently cyclical. When memory chip pricing softens, margins compress, earnings decline, and stock prices follow.
Industry analysts and company leadership highlight several years of limited supply expansion, which should sustain elevated demand levels. However, precisely timing cyclical inflection points remains extraordinarily difficult.
Micron shares have skyrocketed 335% during the past twelve months. The 52-week trading range extends from $61.54 to $471.34 — demonstrating the extreme volatility characteristic of this stock.
Cramer’s present position places him firmly in the cautious observer category. He believes Micron offers better value at a reduced price level compared to today’s trading range.
