Is Micron Technology Stock Built to Withstand More Downside?

Micron Technology (MU) stock is down 9.5% in a day. The recent slide reflects renewed concerns around memory chip supply chains and AMD’s China sales jitters, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?

Before judging its downturn resilience, let’s look at where Micron Technology stands today.

• Size: Micron Technology is a $427 Bil company with $42 Bil in revenue currently trading at $379.40.
• Fundamentals: Last 12 month revenue growth of 45.4% and operating margin of 32.5%.
• Liquidity: Has Debt to Equity ratio of 0.03 and Cash to Assets ratio of 0.12
• Valuation: Micron Technology stock is currently trading at P/E multiple of 35.8 and P/EBIT multiple of 30.5
• Has returned (median) 23.6% 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 worried about this fall: how resilient is MU stock if markets turn south? This is where our downturn resilience framework comes in. Suppose MU stock falls another 20-30% to $266 – 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 $437.80 on 2 February 2026 , and currently trades at $379.40

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

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

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

Feeling jittery about MU stock? Consider a portfolio approach.

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