Cramer Calls This Chip Stock Radically Undervalued. Its CEO Sold 40,000 Shares Anyway

Jim Cramer flew Mad Money to Boise on August 20, 2026 to sit across from Sanjay Mehrotra and tell viewers that Micron Technology (NASDAQ:MU | MU Price Prediction) is “radically undervalued” and “a national treasure.” Four weeks earlier, the CEO he was praising quietly disposed of 40,000 shares.

Cramer’s pitch was straightforward. The stock is up 731% over the past 12 months and trades at just over six times next year’s earnings estimates. Forward P/E is 6, on a trailing multiple of 21, with an analyst target price of $1,501.98. Shares closed at $974.33, up 4% on the day and 733% over one year.

Insider Ledger Tells a Quieter Story

SEC-reported insider data shows Mehrotra disposed of multiple lots on July 24, 2026 at prices ranging from $906.48 to $965.85. Chief Accounting Officer Scott Allen sold 879 shares at $1,000 on July 23, and Chief People Officer April Arnzen sold on July 1 at prices up to $1,095.88. Every one of Mehrotra’s July 24 lots sold below the August 20 close. Even the CEO didn’t nail the top.

To be fair, planned selling by a CEO whose stock ripped 732% in a year is normal. The available filings data does not confirm whether the sales were made under a Rule 10b5-1 plan or tied to option exercises, so intent should not be assumed.

Buyback Blackout Amplifies the Optics

Here is where it gets uncomfortable. Cramer noted on air that Micron cannot repurchase its own stock until December 9, 2026, when its government CHIPS agreement turns two years old. Meanwhile SanDisk (NASDAQ:SNDK) just authorized an additional $14 billion buyback, bringing total remaining authorization to $15.5 billion, and Western Digital (NASDAQ:WDC) repurchased $2.6 billion of stock in fiscal 2026. The only Micron-related traders in the market this summer were insiders, and they were selling.

Fundamentals That Make Cramer’s Case

The fundamentals do give Cramer air cover. Fiscal Q3 revenue was $41.46 billion, up 346% year over year, with non-GAAP EPS of $25.11 and non-GAAP gross margin of 84.9%. Mehrotra said “the memory industry has been structurally transformed by the proliferation of AI” and disclosed 16 Strategic Customer Agreements covering approximately 20% of DRAM volume, with $22 billion in customer deposits already committed. Q4 guidance calls for $50 billion revenue and $31 EPS.

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