Micron Technology's Shares Surge 36% Following Jim Cramer's "Insanely Cheap" Label

Micron Technology's shares have risen by 36% since Jim Cramer's September comments, despite struggling with CHIPS Act grants and declining DRAM pricing. Cramer initially deemed Micron "insanely cheap" with a price-to-earnings ratio of less than 7 times next year's fiscal earnings estimates. However, he recently advised waiting for DRAM pricing to stabilize before investing.

Micron Technology, Inc. (NASDAQ: MU) has seen its shares rise by 36% since Jim Cramer's September comments, despite facing challenges from the CHIPS Act grants and declining DRAM pricing. Cramer initially deemed Micron "insanely cheap" with a price-to-earnings ratio of less than 7 times next year's fiscal earnings estimates [1]. However, he recently advised investors to wait for DRAM pricing to stabilize before investing [1].

Micron's stock has been volatile, with a 27% crash during April's DeepSeek selloff, followed by a 17% surge in August after the company increased its fiscal fourth quarter guidance [1]. The recent rise in stock price can be attributed to the company's strategic moves and the broader market conditions.

The CHIPS Act grants, which have been criticized by President Trump, have also played a role in Micron's stock performance. The U.S. government is pushing for equity stakes in key semiconductor firms in exchange for grants, with Intel being the first to potentially receive a 10% government stake worth about $11.1 billion [2]. This shift from grants to equity ownership is aimed at protecting taxpayers and ensuring a greater stake in the companies receiving funding.

However, Micron faces another challenge from Samsung, which has announced price cuts on HBM3E memory to win market share. This move could impact Micron's revenue and profit margins, as it may be forced to lower its own prices or lose market share [3]. Wells Fargo has warned that Samsung's action will dry up the premium in prices between HBM3E and DRAM memory, potentially impacting Micron's profitability [3].

Despite these challenges, Micron's stock has shown resilience. The company's shares have benefited from the surging demand for high-bandwidth memory (HBM) driven by AI and data centers. By 2025, HBM demand is expected to reach $35 billion, with Micron planning to meet this demand through Singapore HBM production by 2027 [4].

In conclusion, Micron Technology's stock has shown significant volatility but has also demonstrated resilience amidst market challenges. The company's strategic moves and the broader market conditions have contributed to its recent performance. However, investors should remain cautious about the potential impact of government interference and price competition from Samsung.

References:
[1] https://finance.yahoo.com/news/micron-technology-mu-36-jim-212218146.html
[2] https://www.ainvest.com/news/micron-tsmc-government-stake-key-benefitor-chips-act-funds-2508/
[3] https://www.aol.com/why-did-micron-stock-drop-161557330.html
[4] https://www.ainvest.com/news/micron-58th-ranked-1-02b-volume-defies-hbm-surge-ai-fuels-35b-demand-2025-2508/