Micron (MU) Stock: Cramer Says Wait for a Bigger Drop Before Buying

TLDR

• Jim Cramer told investors to hold off buying Micron (MU) until the stock drops further, calling the current level too high after a massive run
• MU is up 335% over the past year, currently trading around $382, down 3.34% on the day
• Micron reported Q2 FY2026 revenue of $23.9 billion, up from $13.6 billion the prior quarter
• Q3 guidance came in around $33.5 billion, pointing to continued strong demand
• The high-bandwidth memory (HBM) market is projected to grow from $35 billion to $100 billion by 2028

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Jim Cramer weighed in on Micron Technology (MU) during a recent Mad Money segment, and his message was pretty clear: don’t chase it right now.

Micron Technology, Inc., MU

A caller asked whether Micron still had room to grow after its latest earnings. Cramer’s response was measured. “Micron is digesting that huge move,” he said, pointing to the stock’s enormous run that pushed the company’s value close to $500 billion. He added he’d want to see a drop well beyond the $18 it had already fallen before getting interested again.

Cramer said the stock “can do that” — meaning pull back further — precisely because it’s already had such a big run.

Cramer’s Earlier Warning on Memory Stocks

This isn’t the first time Cramer has pumped the brakes. Back on March 11, he flagged memory stocks as simply too high, even the ones he likes. He grouped Micron alongside Western Digital, Seagate, and Sandisk, saying they could all be bought “on a big move down.” The trigger he mentioned then: a drop linked to oil prices.

His tone hasn’t changed much since. Cramer sees the value in Micron — he just wants to pay less for it.

The bull case for Micron is hard to argue with on the numbers. The company just posted Q2 FY2026 revenue of $23.9 billion. The quarter before? $13.6 billion. That’s not a typo.

Management guided Q3 revenue to around $33.5 billion, which would be another jump of roughly $10 billion. Gross margins are also moving higher as demand pushes up the prices Micron can charge.

The core driver is high-bandwidth memory, or HBM — the type of chip that powers AI computing. The HBM market was roughly $35 billion at the start of 2025. Micron expects it to hit $100 billion by 2028.

The Cyclical Risk Is Real

Despite all of this, MU trades at just 7.7 times forward earnings. That low multiple isn’t a mistake — it reflects how investors have historically treated memory stocks. The business is cyclical. When memory prices fall, so do margins, earnings, and the stock.

Analysts and management point to several years of constrained supply, which should keep demand elevated for now. But predicting the exact turn of the cycle is nearly impossible.

The stock is up 335% over the past year. Its 52-week range runs from $61.54 to $471.34 — a spread that tells the whole story about volatility in this name.

Cramer’s current stance puts him in the “wait and watch” camp. He sees more value in Micron at a lower price than where it sits today.

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