MU is undervalued at a forward P/E of six; DCF estimates a fair value of $1439 (vs. current $1041), implying >38% upside in 12-18 months driven by robust fundamentals.

Micron is scheduled to announce its quarterly financial results after the market closes on September 30. Given that Micron's stock has already risen by more than 264% since the beginning of 2026, there are a lot of conflicting feelings among investors.

There are some investors who own Micron shares and fear that the share price will collapse after the company's quarterly financial update. There are others watching from the outside, interested in buying Micron shares, but they don't know which way to go.

They do not know whether they should buy before the earnings because the share price has risen so much, and they fear missing the opportunity if they do not buy before the earnings and the share price jumps.

But they are also concerned that, given the stock's high price, it may be overvalued and vulnerable to a major collapse after the earnings update. I will answer the question of whether I believe Micron stock represents a buying opportunity before this massive investor update.

As for Micron, its recent updates have been exceptional. The most recent one, which the company presented on June 24 and which is the latest update investors have received, was stunning.

Micron announced revenues rose to $41.4 billion, up from $9.3 billion in the same quarter of the previous year. In other words, revenues increased more than 4 times on an annual basis.

Operating profit rose to 33.3 billion from 2.1 billion.

Thus, once again, a huge increase in two of the most important categories for Micron, revenue and profitability. In fact, its most recent completed quarter operating profit margin of 80% is the first time in my nearly two decades of following companies and conducting financial analysis and stock market research that I have seen a company announce a quarterly operating profit margin that exceeds 80%.

It's unbelievable. This doesn't happen very often. It is an extremely rare event, and it is the result of increased demand for Micron products and services , an organic demand.

Micron does not offer any discounts, incentives, promotions, or anything of the sort. Its products are fully booked for 2026, and most of 2027, and we are already talking about selling out the entire 2028 production within the next few months .

Therefore, the demand for the company's products is absolutely unprecedented . Of course, what fuels all of this is the proliferation of proxy AI, which makes the processor and memory components in data centers more important, in addition to the graphics processing unit, which has been important since the launch of ChatGPT.

Micron has also signed long-term agreements with customers, which helps investors feel that business is less cyclical than it used to be . Now, I still believe that business is cyclical and will remain cyclical forever , but these agreements help to reduce fluctuations in sales and profits.

It gives the company a clear view of its sales, orders, and what its customers are looking for, reducing cyclicality in both revenue and profitability.

Because if a company knows more about what its customers want in advance, it can prepare more effectively. If we know about something 3 years in advance, we can prepare for it much better than if someone told us about it one day before.

For a company that involves a lot of advanced component manufacturing and research and development, this is even more important and beneficial. Management expects good times to continue in the next quarter.

They projected revenues of $50 billion and a gross profit margin of approximately 86%, which is roughly the same level of gross profit margins the company recorded in the last quarter.

Therefore, the operating profit margin should also be above 80% again for two consecutive quarters, which would be a very impressive achievement. The $50 billion revenue and 86% gross profit margin would represent an improvement over the company’s recent performance, which, as we have noted, was already excellent.

An increase of approximately 20% to 25% from 41.4 billion to reach $50 billion in revenue. The gross profit margin, which was already excellent at 84.6%, will see a slight increase to 86%.

Therefore, Micron is expected to see an improvement in both revenue and profitability in the next quarter.

Looking ahead, analysts who follow Micron's fiscal year 2027, which ends in August for the company, predict revenue will increase by more than 90% again next year to $247 billion.

By 2028, Wall Street analysts expect a significant slowdown in the company's revenue growth to 13.6%, but it will still be a substantial increase from $248 billion to $281 billion in revenue.

Therefore, from our current perspective, estimates do not point to a significant decline in Micron's sales in 2027 or 2028. If you are worried about a significant slowdown in Micron's revenue, it is unlikely to happen before fiscal year 2029, if at all.

Therefore, we have a few years of time ahead of Micron to grow its business and prepare in case of a cyclical slowdown.

Another category where Micron excels is cash flow from operations. These sales lead to improved cash flow from operations as well as improved profitability. Growth does not cause disruptions to a company's ability to generate cash, which happens to some companies that sell physical products, and a supermicrocomputer is a good example of this.

You can see that its cash flow from operations nearly quadrupled to $ 45.7 billion in the nine months ending May 28, compared to $11.8 billion in the nine months ending May 29, 2025.

So, Micron is selling its products at higher average selling prices and charging deposits and cash payments relatively quickly after those sales, which is further evidence of the high quality of sales and the continued demand for the company's products.

Micron is also investing in growth for future production capacity and in technology improvements. Its spending on property, plant and equipment has nearly doubled from $ 10.2 billion to $19.6 billion in the last nine months , and I wouldn't be surprised if that figure continues to rise as a result of conversations with its customers about future demand and expectations.

In fact, as a result of some of its investments in research and development, Micron announced on September 15 the successful trial of a 512GB DDR R-DIMM memory module for servers.

This type of innovation that Micron brings to the market is what drives the demand for its products and services to keep rising. Micron has not yet succeeded in convincing investors that its business is no longer cyclical.

This debate is still ongoing in the market. There is ongoing back and forth. Some investors argue that it is no longer as cyclical as it once was, while others believe it is still cyclical.

Personally, I see it as less cyclical thanks to long- term agreements, but it is still cyclical, is that clear? Others may have extreme views, but the assessment suggests that investors in general still see the company as a cyclical business, right?

This is what the share price suggests, and what the valuation indicates .

Those who have the most money, or the most influential investors in the market, from institutions and investors to others, strongly believe that business is still cyclical. They didn't give " micron" any credit for reducing or removing the periodicity feature, okay?

So, if that happens, if Micron somehow manages to convince those investors who have the most capital and the most influence on valuation. If you succeed in convincing them, a reclassification of the forward earnings multiple to levels more appropriate for a non-cyclical company may occur.

Currently, the stock is trading at a ridiculously cheap valuation, with a forward price-to-earnings ratio of only six. This is roughly equivalent to a quarter of the average valuation of a common stock in the Standard & Poor's 500 index.

As we have seen, Micron's work is not ordinary. It is excellent and experiencing great prosperity. It is one of the fastest growing companies in the market, and has the best operating profit margin you can find in the market, at least among the companies I cover.

Demand is expected to increase significantly over the next few years. Therefore, a business with these characteristics would typically sell at a much higher forward price-to-earnings ratio, perhaps as high as 40, 50 or more , were it not for the cyclical factor, where investors essentially expect the earnings per share to eventually collapse, creating a fairer valuation if measured over 10 years and calculated the average expected earnings per share over the next decade.

This is exactly what the market takes into account when pricing. That's why it's traded at such a low valuation. Therefore, I also updated my assessment of " Micron" using discounted cash flows today.

Once again , I have revised my estimates upwards regarding the amount of free cash flow I expect this company to generate over the next few years and over the next decade and beyond.

It seems that every three months or every month I revisit some of these AI companies, and my estimates keep rising because the demand for these products and services keeps turning out better than I had anticipated.

Therefore, I am raising it higher and higher . For Micron, I now estimate the value of one share in the company at $1439. The current market price is $1041 per share, so I expect Micron stock to rise by more than 38% over the next 12 to 18 months .

Of course, we will learn a lot from the company when it announces its results on September 30, and since it is a huge event, I will be live streaming to cover those results as soon as Micron announces them after the markets close on September 30.

I estimate the results will be released at approximately 1:15 PM Pacific Time.

So this is roughly the time when I will start live streaming to cover those results. But this live event will be available exclusively to members of my channel. So if you are interested in attending, which I know you are if you are watching this video, click the Join button below and get a membership to the channel.

Subscriptions start at less than $5 per month. There is a lot of added value in addition to the direct profit coverage you will receive from many, many companies including Micron, Nvidia, Amazon, MetaPlatforms, Alphabet, Microsoft, and many more.

Now, should you buy before or after the profits? I think we learned during this assessment that Micron is currently undervalued and has great business prospects , and I have rated the stock as an all-year buy for several years now.

But timing is the most important thing now for many of you who are watching this video. Therefore, I feel the stock is undervalued enough to allocate a percentage of your decision before the earnings update.

For example, if you are thinking about investing a thousand dollars and are trying to figure out how to do it. You don't have to do all or nothing, do you ? You don't have to invest the full $1000 before profits or the full $1000 after.

You can break that down somewhat . Since the stock is undervalued, if I were interested in buying and trying to time it, I would allocate 75% of my purchases before earnings and 25% after earnings.

So, if I had $1,000 to invest, I would take $750 and invest it before the announcement, and then take $250 and invest it after. I allocate my risk based on whether you actually own Micron shares, of course.

If you already own Micron shares, I would change the plan slightly. On the contrary, I will do the exact opposite. I would invest 25% before the results and 75% after if you already own Micron shares, because you already own the potential profits .

So, if they announce strong quarterly results and the share price rises , you already own the shares. Therefore, you will benefit from it directly. Your risk lies in the price falling, and by distributing the investment in the other way, 25 before and 75 after, you protect yourself from this fall because you are more exposed to risk there.

That's what I'll keep in mind. But overall, I think it's a great company that's selling at an excellent price, and it's a good buying opportunity for long-term investors.