From Startup Fortune · · 1m 40s
Micron Approves $35.16 Billion Stock Buyback
Micron's board authorizes record $35.16 billion stock buyback as AI memory shortage drives profits.
In brief
Micron's board authorizes record $35.16 billion stock buyback as AI memory shortage drives profits. Micron's board approved a $35.16 billion stock buyback authorization, the largest in its history, amid AI memory shortages and strong pricing power. Originally reported by Startup Fortune.
Micron Board Sets $35.16 Billion Buyback Ceiling
Micron's board approved a $35.16 billion stock repurchase authorization, the largest in the company's history.
Buyback Formula Based on Cash Flow
The authorization uses $2.16 billion leftover from 2018 plus 100% of adjusted free cash flow for Q3 2026, minus CHIPS Act grants and dividends.
AI Memory Shortage Drives Pricing Power
Micron sold out 2026 HBM4 supply through long-term agreements, pushing gross margins above 86% due to persistent memory undersupply.
Record Revenue and Margins in Q3 2026
Micron reported $54.23 billion quarterly revenue, a 379% year-over-year jump, with GAAP gross margin at 86.8%.
HBM4 Supply Sold Out for 2027
Micron has sold out its 2027 AI memory production under long-term contracts, with HBM4 now in mass production for Nvidia's Vera Rubin platform.
Samsung and SK Hynix Report Strong Profits
Samsung projected $80.17 billion quarterly profit, a nine-fold year-over-year increase, while SK Hynix reported similar strength this year.
UBS Projects $400 Billion Cumulative Cash Flow
UBS analysts project Micron could generate over $400 billion in cumulative free cash flow between 2027 and 2.029, buying back over 40% of shares by 2028.
AI Buildout vs. Cash Flow Reality
Hyperscalers like Nvidia and Microsoft are still in heavy capex mode, while Micron collects cash rather than spending it on AI infrastructure.
The one thing
Micron's board approved a $35.16 billion stock buyback authorization, the largest in its history, amid AI memory shortages and strong pricing power.
