Is Micron Technology Stock Built to Withstand a Pullback?
Micron Technology (MU) stock is up 18.8% in 5 trading days. The rally reflects robust demand for AI memory chips and strong earnings, but big moves like this often invite a tougher question: is the stock truly resilient when markets reverse?
Before judging its downturn reslience, let’s look at where Micron Technology stands today.
- Size: Micron Technology is a $311 Bil company with $42 Bil in revenue currently trading at $276.27.
- Fundamentals: Last 12 month revenue growth of 45.4% and operating margin of 32.5%.
- Liquidity: Has Debt to Equity ratio of 0.04 and Cash to Assets ratio of 0.12
- Valuation: Micron Technology stock is currently trading at P/E multiple of 26.1 and P/EBIT multiple of 22.2
- Has returned (median) 45.9% within a year following sharp dips since 2010. See MU Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive. For details, see Buy or Sell MU Stock
That brings us to the key consideration for investors chasing this rally: how resilient is MU stock if markets turn south? This is where our downturn resilience framework comes in. Suppose MU stock falls 20-30% to $193 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- MU stock fell 49.8% from a high of $97.36 on 14 January 2022 to $48.88 on 26 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 7 March 2024
- Since then, the stock increased to a high of $276.59 on 22 December 2025 , and currently trades at $276.27
| MU | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -49.8% | -25.4% |
| Time to Full Recovery | 528 days | 464 days |
2020 Covid Pandemic
- MU stock fell 42.5% from a high of $59.99 on 19 February 2020 to $34.47 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 16 November 2020
| MU | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -42.5% | -33.9% |
| Time to Full Recovery | 245 days | 148 days |
2018 Correction
- MU stock fell 53.7% from a high of $62.62 on 29 May 2018 to $29.02 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 November 2020
| MU | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -53.7% | -19.8% |
| Time to Full Recovery | 700 days | 120 days |
2008 Global Financial Crisis
- MU stock fell 88.1% from a high of $14.23 on 12 January 2007 to $1.69 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 27 June 2013
| MU | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -88.1% | -56.8% |
| Time to Full Recovery | 1,680 days | 1,480 days |
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