# Micron Approves $35.16 Billion Stock Buyback

> Micron's board authorizes record $35.16 billion stock buyback as AI memory shortage drives profits.
- Title: Micron Approves $35.16 Billion Stock Buyback · Startup Fortune
- Summary: 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…
- Keywords: micron, stock buyback, ai memory shortage, hbm4, samsung, sk hynix, chips act, free cash flow, startups, business, Approves, Billion
- Source: Startup Fortune — https://startupfortune.com/microns-board-authorizes-a-record-35-billion-stock-buyback
- Published: 2026-10-10T14:55:04+00:00
- Read time: 1 min
- Topics: micron, stock buyback, ai memory shortage, hbm4, samsung, sk hynix, chips act, free cash flow, startups, business
## 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.
## Key takeaway

Micron's board approved a $35.16 billion stock buyback authorization, the largest in its history, amid AI memory shortages and strong pricing power.