TLDR
- Jim Cramer is bullish on Micron despite a recent stock drop he blames on Samsung’s underwhelming buyback announcement
- Micron posted fiscal Q3 revenue of $41.46 billion, up 346% year over year, with non-GAAP EPS of $25.11 beating estimates by 24%
- Micron has $100 billion in AI contracted revenue locked through 2030, with HBM and DRAM capacity sold out through 2027
- Micron trades at a forward P/E of roughly 6, compared to Intel at 68.97 and AMD at 61
- Cramer named Micron as his top pick among four “indispensable” memory chip stocks, alongside SanDisk, Seagate, and Western Digital
Jim Cramer is doubling down on Micron Technology, calling the memory chip maker radically undervalued even as its stock moves up and down on headlines from South Korean rivals.
Micron stock is up roughly 254% in 2026, but a recent pullback caught attention. Cramer says the sell-off had little to do with Micron itself.
The trigger was Samsung’s shareholder-return announcement. Investors judged it as inadequate compared to what SK Hynix had already committed to. SK Hynix unveiled plans to repurchase and cancel roughly $28.6 billion worth of its own stock between August 20 and November 19.
Samsung had been expected to announce returns exceeding $72 billion. The eventual announcement fell well short of that bar.
“The Samsung buyback was regarded as not good enough,” Cramer said, calling the market reaction “chimerical” given how strong Micron’s own numbers look.
Micron’s Numbers Are Hard to Argue With
Micron posted fiscal Q3 revenue of $41.46 billion, up 346% year over year. Non-GAAP EPS came in at $25.11, beating consensus by 23.8%. Non-GAAP gross margin hit a record 84.9%, up from 39% a year ago.
The company has $22 billion in cash deposits from 16 strategic customers, with take-or-pay clauses and pricing floors baked in. Total AI contracted revenue locked through 2030 stands at $100 billion.
HBM and DRAM capacity is sold out through 2027. AI data centers are projected to consume roughly 70% of global memory chip production in 2026.
Cramer named Micron alongside SanDisk, Seagate, and Western Digital as four memory chip stocks he calls “indispensable” right now. He tied the broader rally to comments from Elon Musk, who said on SpaceX’s Q2 earnings call that memory has become the bottleneck for AI data center buildouts.
“While I acknowledge that I am not early, I do not think I am late,” Cramer told viewers.
Why Samsung Still Moves Micron’s Stock
The Samsung connection runs deeper than one bad buyback. Samsung, SK Hynix, and Micron together control roughly 90% of global DRAM supply. When one moves, investors treat it as a signal for all three.
Samsung also began mass-producing HBM4 in February 2026, ahead of everyone else. Micron is still primarily shipping HBM3E. That gap gives some investors a reason to be cautious about Micron’s position at the cutting edge.
There is also a structural disadvantage. Micron’s CHIPS Act funding agreement bans large-scale share repurchases until December 9, 2026. Samsung and SK Hynix can buy back tens of billions in stock. Micron cannot.
Despite all of that, institutional money is moving in. Hedge fund ownership climbed from 154 to 184 funds between Q1 and Q2. Coatue Management increased its Micron stake by 1,794% to $3.6 billion. George Soros’ fund increased its position nearly eightfold in Q2.
Micron’s forward P/E sits at roughly 6, compared to Intel at 68.97 and AMD at 61. Cramer visited Micron’s Boise, Idaho facility and came away convinced the demand story is real. The company has committed more than $250 billion through 2035 to expand domestic manufacturing.
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