How to Invest in Micron Technology

Micron Technology's AI-powered acceleration has many people interested in buying its stock. This guide will teach you everything you need to know about Micron Technology and how to add the tech stock to your portfolio.

How to buy Micron Technology stock

Anyone can become a shareholder of Micron Technology. The memory and storage solutions company trades on the Nasdaq Stock Exchange under the stock ticker MU, so you can buy the stock in any brokerage account.

Should I invest in Micron Technology?

There's no one-size-fits-all approach to investing. It's a personal endeavor. You should strive to build a portfolio that aligns with your values, risk tolerance, and return objectives. Not every stock will be right for your situation.

With that in mind, here are some reasons why you might want to invest in Micron Technology:

• You think Micron Technology will be one of the biggest beneficiaries of the AI megatrend.
• You believe AI will continue accelerating revenue and profit growth for Micron.
• Adding Micron would help diversify your portfolio.
• You don't need much dividend income.
• You don't expect the supply challenges that plagued Micron in the past to be a problem in the future.
• You believe Micron can grow into its high valuation.

On the other hand, here's why Micron might not be the right stock for you:

• You don't understand what Micron does or how it makes money.
• You're seeking to invest in consistently profitable companies.
• You want stocks with a higher dividend yield or more consistent dividend increases than Micron.
• You're not sure AI will be a long-term growth driver for the company.
• You already own several other technology stocks in your portfolio.
• You're concerned that a future oversupply of memory and storage products could affect Micron's financial results and weigh heavily on its stock.
• You think Micron Technology trades at an unjustifiably high valuation.

Is Micron Technology profitable?

It's vital to research a company's profitability. Earnings tend to drive a stock's performance over the long term. Ideally, investors will want to see that a company is growing its profits or at least on the path toward making money.

Profits had proven elusive to Micron Technology in its 2023 fiscal year. A challenging environment in the memory and storage industry resulted in the company's revenue getting cut in half (from $30.8 billion in fiscal year 2022 to $15.5 billion in fiscal year 2023). As a result, it went from generating $8.7 billion of net income in 2022 to reporting a net loss of $5.8 billion in fiscal 2023.

However, AI demand and tight supply accelerated the company's return to profitability in 2024. In its fiscal second quarter, Micron reported $5.8 billion of revenue (up from $4.7 billion in its fiscal first quarter and $3.7 billion in the year-ago period). That enabled the company to return to profitability. It reported $793 million of net income in the period (up from a net loss of $1.2 billion in its fiscal first quarter and $2.3 billion in the year-ago period).

Micron Technology expects the upward trajectory to continue. "Our preeminent product portfolio positions us well to deliver a strong fiscal second half of 2024," CEO Sanjay Mehrotra said in the company's fiscal second-quarter earnings report. "We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multiyear opportunity enabled by AI."

Does Micron Technology pay a dividend?

Micron Technology has paid dividends to its shareholders since initiating a payout in 2021. As of mid-2024, the company's quarterly rate was $0.115 per share ($0.46 annually). With a share price in the $120s at the time, Micro Technology had a 0.4% dividend yield. The figure was significantly lower than the S&P 500's 1.4% dividend yield. The company had only increased its dividend payment once since initiating it in 2021 (a 15% increase in 2022).

Given its low yield and limited growth track record, Micron Technology likely won't appeal to dividend-focused investors.

ETFs with exposure to Micron Technology

Not everyone wants to be an active stock picker and manage a portfolio of individual stocks. Thanks to exchange-traded funds (ETFs), you don't have to be an active investor. These passive investment vehicles allow you to gain some exposure to a company through a thematic approach or broader market strategy.

Will Micron Technology stock split?

Micron Technology didn't have an upcoming stock split as of mid-2024. The memory company has split its stock three times in its history:

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