The article argues Micron is building a financial cushion that could let it invest aggressively, withstand a downturn and return capital to shareholders. In fiscal 2026, Micron generated $89.7 billion in operating cash flow and $62.3 billion in adjusted free cash flow, up from $3.7 billion in fiscal 2025, even after $27.4 billion of capital expenditure. The company ended the year with $73.5 billion in cash, marketable investments and restricted cash, versus $12 billion a year earlier. Micron recently announced an additional $33 billion buyback authorization, bringing total authorized repurchases to about $35.2 billion, though this is not an obligation to buy shares. The author cautions that fiscal 2026 cash generation should not be assumed to be a sustainable annual run rate if memory market conditions weaken.
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Micron's board raised its buyback authorization to $35.16 billion on Oct. 8, as disclosed in its annual report filed Oct. 9. Almost all of that figure comes from one quarter: the $2.16 billion left under the earlier program plus 100% of the last quarter's adjusted free cash flow after dividends, about $33 billion. The author expects Micron to spend more on buybacks in the next year than the $7.84 billion it spent over the past eight fiscal years, though the authorization does not force purchases and CHIPS Act grant conditions restrict repurchases early on. At a share price near $985, the full authorization would buy only about 35 million shares, roughly 3% of the 1.13 billion outstanding, so the effect on share count and earnings per share may be small. The author still sees the stock as reasonable at about 13 times fiscal 2026 earnings, but says memory prices are likely to drive its next move more than buybacks do.
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Micron (MU) raised its stock repurchase authorization from approximately $2.16 billion remaining to $35.16 billion, its largest buyback ceiling ever, as CHIPS and Science Act restrictions on buybacks change on Dec. 9. In fiscal 2026, the company generated $133.2 billion in revenue (up 256%) and $99.3 billion in operating income, driven by surging memory prices from AI infrastructure demand, and fourth-quarter free cash flow reached $33.2 billion. At roughly $1,000 per share, the program could retire about 35 million shares, around 3.1% of outstanding shares. Applying a 17x forward P/E to projected fiscal 2027 earnings of $176 per share implies a price of $2,992, and the author argues buybacks alone won't push the stock to $3,000 but could act as a catalyst.
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