Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have been asked to look at Micron at what may be the most extraordinary moment in the history of the memory business. The company just reported a quarter with revenue of $41.5 billion, an 84.6% gross margin, and $28.2 billion of net income. It guided the next quarter to $50 billion of revenue at an 86% gross margin. Sixteen customers have signed five-year take-or-pay contracts worth roughly $100 billion at floor prices. The stock is up about 256% this calendar year and nearly 700% over twelve months. Our conclusion is that Micron is a good company in an average business, and the price now assumes that the average business has permanently become a wonderful one. We do not believe that. Micron is one of three companies on earth that can make leading-edge DRAM, and that is a real barrier.
Recent filings analysed: 8-K (2026-08-26), 10-Q (2026-06-25), 8-K (2026-06-24), 8-K (2026-06-09).
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