Is Micron Stock Halal?
Table of Contents
How much of Micron’s revenue comes from haram?
Micron earns its revenue from the following revenue sources:
- Compute and Networking Business Unit:
Includes memory products and solutions sold into client, cloud server, enterprise, graphics, and networking markets.
- Mobile Business Unit:
Includes memory products for smartphones and other mobile devices.
- Storage Business Unit:
Includes SSDs and component-level solutions for enterprise and cloud, client, and consumer storage markets.
- Embedded Business Unit:
Includes memory and storage products sold into industrial, automotive, and consumer markets.
The contributions from each of Micron’s revenue segments in their 2020 annual report were as follows:
Practical Islamic Finance concludes:
None of Micron’s revenue comes from anything inherently haram.
Does Micron rely on interest to operate?
| Year-to-Date for period ended 6/3/2021 | Fiscal year ended 12/31/2020 | Fiscal year ended 12/31/2019 | |
|---|---|---|---|
| Interest Income | $28,000 | $114,000 | $205,000 |
| Total Revenue | $19,431,000 | $21,435,000 | $23,406,000 |
| Interest Expense | $136,000 | $194,000 | $128,000 |
| Total Expenses | $15,536,000 | $18,364,000 | $15,981,000 |
| Interest Income / Revenue | 0.14% | 0.53% | 0.88% |
| Interest Expense / Total Expense | 0.88% | 1.06% | 0.80% |
Practical Islamic Finance concludes:
Riba is used but not relied upon in Micron’s operations.
What is Micron’s Environmental, Social, and Governance (ESG) impact?
Environment
According to Micron’s 2021 Sustainability Report, since 2018, Micron has reduced its greenhouse gas emissions by 36%.
Social
Micron has an above-average Glassdoor rating of 3.7 out of 5.0 from over 3,000 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Governance
No notable governance highlights.
Practical Islamic Finance concludes:
Micron has a net positive ESG impact.
Comfort Rating
From Micron’s business, financial, and ESG reviews, Practical Islamic Finance rates Micron stock as: