Micron 10-K Filing Shows 33.8% Valuation Gap

Data released following Micron’s 10-K filing on October 9, 2026, indicates that Micron shares are currently trading roughly 33.8% above their estimated fair value, per GuruFocus figures. This valuation difference stems from a GF Value of $768.96 compared to a closing price of $1,029. Meanwhile, the average one-year price target for the stock sits at $1,555.13, keeping the overall outlook divided between record-breaking profits and a high share price.

Also Read: Micron Stock Could Triple to $3,000, D.A. Davidson Analyst Says

Micron Stock Valuation: AI Growth, Financial Strength, and Key Risks

What The Micron 10-K Filing Shows

The 10-K report covers the fiscal year ending September 3, 2026, and features massive financial figures. Revenue reached $133.2 billion, up from $37.4 billion during the previous year. Operating income surged to $99.3 billion compared to $9.8 billion in 2025, and gross margin hit $107.5 billion. These financial figures are crucial for understanding the equity’s valuation, as they account for the strong momentum the shares experienced this year.

Demand from artificial intelligence data centers drove the bulk of this progress. Micron is currently scaling up high-bandwidth memory (HBM) production for AI processors—with HBM4E next in line—and has also introduced its 1-gamma DRAM node utilizing EUV lithography. Chairman and CEO Sanjay Mehrotra noted:

“Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027.”

Why GuruFocus Sees A 33.8% Valuation Gap

While Micron holds a current GF Score of 93/100, that metric only tells part of the story. Growth earns a 10/10, Financial Strength and Profitability each score 9/10, and Momentum rests at 6/10. The weakest area is valuation at 5/10, which explains the observed gap. According to GuruFocus’ calculations, the market price has outpaced the fundamental worth of the enterprise.

The recent market rally accounts for much of this dynamic. MU shares have risen 260.53% year-to-date and 435.02% over the trailing 12-month period. Even so, the equity trades at a trailing price-to-earnings ratio of just 13.84 alongside an EPS of $74.33, meaning the valuation is supported by actual earnings rather than speculation alone.

Micron Stock Price Target And Forecast

Wall Street holds a contrasting perspective compared to GuruFocus. The consensus price target of $1,555.13 implies roughly 51% upside potential from the $1,029 close, whereas the GF Value suggests a significant pullback. This divergence fuels ongoing debates regarding the shares’ true worth.

Near-term projections also appear solid on paper. Management guided fiscal first-quarter 2027 revenue to $61.5 billion (plus or minus $1.5 billion) and reported securing supply agreements for the vast majority of its 2027 HBM inventory. CFO Mark Murphy remarked:

“Our inventory levels and supply remain extremely tight and we expect DIO to decline in the coming quarters.”

Nevertheless, potential hazards remain. The 10-K filing highlights that memory semiconductors operate in cyclical patterns, meaning a drop in demand could cause prices to fall rapidly. Furthermore, China’s Cyberspace Administration restricted critical infrastructure providers from purchasing Micron merchandise in May 2023. Additionally, corporate insiders sold $373.9 million worth of shares over the past year while purchasing just $7.8 million.

Also Read: Bernstein’s Latest Micron Stock Price Prediction (MU)

At present, the valuation disparity remains wide, with the next major test arriving during the earnings report estimated for December 23, 2026. That update could influence both future forecasts and price targets. Additionally, Micron offers a $0.15 dividend with an ex-dividend date of October 14.

Frequently Asked Questions

What is the current valuation gap for Micron stock?

According to GuruFocus data following the 10-K filing, Micron stock sits about 33.8% above its estimated fair value, based on a GF Value of $768.96 versus a $1,029 closing price.

What were Micron’s revenue and operating income for fiscal 2026?

For the fiscal year ending September 3, 2026, Micron reported revenue of $133.2 billion and an operating income of $99.3 billion.

What is the average one-year price target for Micron shares?

Wall Street’s average one-year price target for Micron stands at $1,555.13.

What is Micron’s fiscal Q1 2027 revenue guidance?

Management has guided fiscal Q1 2027 revenue to $61.5 billion, give or take $1.5 billion.

When is Micron’s next earnings report expected?

Micron’s earnings report is estimated for release on December 23, 2026.