Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 1 Jun 2026
MU· Technology
Micron Technology
Micron is a fine memory chip business priced as a permanent winner, with an owner earnings yield of just 0.15%.
Buffett fit
Weak fit
Owner
48
Durability
26
Management
60
Price
0
Score updated 23 Oct 2026 · analysis from 1 Jun 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned all of Micron, I would be pleased with the current cash gusher but skeptical it lasts.
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This is the weak spot, and the durability score of 26 says so. Memory is a brutal commodity where prices have collapsed before and will collapse again.
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Management gets a passing grade of 60. The balance sheet is conservative with of just 0.15 and interest coverage near 80 times, and they have not been diluting owners, with share count actually shrinking slightly.
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There is none here. At a of 45.3 and an yield of 0.15%, you are paying a premium price for peak earnings in a cyclical commodity, and the EV to of 110.8 confirms it.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
7- 1Top of cycle profitability is striking, with a 58.4% and a 48.5% .
- 2Returns on capital this year are excellent at 27.7%, reflecting strong demand for high bandwidth memory.
- 3The balance sheet is a fortress, with of only 0.15 and net debt actually negative at -0.05 times EBITDA.
- 4Interest is covered nearly 80 times over, so there is no solvency risk to speak of.
Concerns
7- 1The price is the whole problem: a of 45.3, an yield of 0.15%, and an EV to of 110.8 earn a valuation score of 0.
- 2Durability is poor at a score of 26, because memory is a commodity with no lasting .
- 3The 27.7% return on capital this year flatters the picture; the five year average is just 6.0%, which is the honest through cycle number.
- 4Earnings have collapsed by more than 100% in past downturns, an epsMaxDecline of -1.68, and they can do so again.
Price history
$856+1,139.5%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Micron makes DRAM and NAND memory chips and sells them into phones, data centers, cars, and PCs. Right now demand for high bandwidth memory is hot, and you can see it in the numbers: a 58.4% and a 48.5% at the top of the cycle. The trouble is that memory is a commodity, and these margins are a peak reading, not a steady state.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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