Micron (MU) Stock: Jim Cramer Advises Patience for Better Entry Point

Key Takeaways

• Jim Cramer advised viewers to exercise patience with Micron (MU), recommending they wait for a more significant decline before initiating positions
• Shares have surged 335% in the past twelve months, currently hovering near $382, retreating 3.34% in today’s session
• The chipmaker delivered Q2 FY2026 revenue of $23.9 billion, a substantial increase from the previous quarter’s $13.6 billion
• Company guidance for Q3 projects approximately $33.5 billion in revenue, signaling robust ongoing demand
• Industry forecasts predict the high-bandwidth memory (HBM) sector will expand from $35 billion to $100 billion by 2028

During a recent Mad Money broadcast, Jim Cramer delivered his assessment on Micron Technology (MU), and his advice was straightforward: resist the temptation to buy at current levels.

Micron Technology, Inc., MU

Cramer’s Previous Caution on Memory Chip Companies

This cautious stance isn’t new territory for Cramer. In a March 11 segment, he characterized memory sector stocks as overextended, even those he fundamentally favors. He mentioned Micron together with Western Digital, Seagate, and Sandisk, suggesting all represented buying opportunities “on a big move down.” At that time, he cited potential oil price fluctuations as a possible catalyst for such a decline.

His perspective has remained remarkably consistent. Cramer acknowledges Micron’s fundamental strengths — he simply believes the current valuation doesn’t offer adequate margin of safety.

The optimistic thesis for Micron rests on compelling financial performance. The semiconductor manufacturer recently reported Q2 FY2026 revenue reaching $23.9 billion. The preceding quarter delivered $13.6 billion. That’s a genuine doubling of revenue in a single quarter.

For the upcoming Q3 period, company leadership projected revenue approaching $33.5 billion, representing yet another sequential increase of approximately $10 billion. Profit margins are simultaneously expanding as strong demand dynamics enable higher average selling prices.

The primary growth engine is high-bandwidth memory, commonly referred to as HBM — the specialized chip architecture essential for artificial intelligence workloads. The HBM market stood at approximately $35 billion in early 2025. Micron’s forecast calls for this market to reach $100 billion by 2028.

The Cyclical Risk Is Real

Yet despite this impressive trajectory, MU shares trade at merely 7.7 times projected forward earnings. This compressed valuation multiple isn’t accidental — it mirrors how the investment community has traditionally valued memory semiconductor companies. The underlying business exhibits pronounced cyclicality. When memory chip pricing weakens, margins compress, profitability declines, and share prices typically follow.

Industry observers and company executives highlight several years of supply constraints ahead, which should sustain elevated demand levels in the near term. However, accurately timing cyclical inflection points remains extraordinarily challenging.

The stock has appreciated 335% over the trailing twelve months. Its 52-week trading range extends from $61.54 to $471.34 — a price band that vividly illustrates the volatility inherent in this equity.

Cramer’s present position places him firmly in the “wait for a better opportunity” category. He recognizes Micron’s value proposition but believes it will be considerably more attractive at lower price levels.

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