- Micron's board authorized an additional $33 billion in buybacks, bringing the total authorization to $35.16 billion, according to a Form 10-K filing.
- Micron has been restricted from buying back stock until December under its CHIPS Act funding, so the authorization sets up a resumption after a two-year pause.
- TD Cowen analyst Krish Sankar had expected an authorization of about $20 billion. The $35 billion total exceeds the roughly $29 billion authorized by SK Hynix.
- The current authorization is less than the roughly $47 billion in gross profit Micron posted in its most recent quarter alone.
- Sankar said pricing could start to decline in Q3 2027, though Micron's visibility into demand is improving through new long-term agreements.
- Nvidia no longer makes up more than 10% of Micron's quarterly revenue, driven by high-bandwidth memory purchases, according to Sankar.
- Micron's stock fell more than 4% Monday morning amid broader chip sector declines and reports of progress by ChangXin Memory Technologies on memory density.
Quotes
“is meant to attract more capital and show that Micron can be more shareholder-friendly than Hynix, while being prudent with long-term capital allocation”
“has materially more earnings power”