TLDR
- Micron (MU) stock fell about 4% on Monday, days after the board approved a $35.16 billion buyback ceiling.
- The company cannot repurchase stock until December 9, 2026, due to CHIPS Act funding terms.
- Fiscal Q4 revenue reached $54.23 billion, up 379%, and adjusted free cash flow came in at $33.2 billion.
- Micron spent only $650 million on buybacks in fiscal 2026 and set no fiscal 2027 target.
- Rosenblattās target is $1,900 and DA Davidsonās is $3,000, while the stock trades about 18% below its $1,255 high.
Micron (MU) stock closed down 3.88% on Monday. The decline followed news that the chipmaker raised its buyback authorization to $35.16 billion.
The stock is up between 247% and 270% this year, depending on the source. It still sits about 18% below its 52-week high of $1,255, set on June 25.
Micron revealed the increase in its 10-K filing on Friday. The board signed off on it October 8.
It is the largest buyback ceiling in company history. The plan adds $33.03 billion to the $2.16 billion left from a 2018 program.
The new amount is tied to adjusted free cash flow for the quarter ended September 3, 2026. That number accounts for dividends and certain CHIPS Act grants.
Buying will not start right away. Micronās CHIPS Act funding agreements bar repurchases until December 9, 2026.
The plan has no expiration date and no required pace. Micron also did not give a dollar target for fiscal 2027.
Cash Flow Is Not the Issue
Micron produced $33.2 billion in adjusted free cash flow last quarter. Fiscal Q4 revenue hit a record $54.23 billion, up 379% from a year earlier.
Non-GAAP EPS was $33.42, and the non-GAAP gross margin was 87%. Both beat consensus estimates.
Full-year revenue came to $133.19 billion, compared with $37.38 billion in fiscal 2025. GAAP net income reached $84.97 billion.
Even so, Micron spent just $650 million on buybacks in fiscal 2026. The CHIPS Act ban and managementās plan to scale up later explain the slow pace.
The older program was light, too. Yearly repurchases under it ran from zero to $2.66 billion.
Micron is also paying for new capacity in high-bandwidth memory, which powers AI systems. Its cash flow has to cover that spending and any buybacks.
Analysts Stay Positive
Rosenblatt analyst Kevin Cassidy rates Micron a Buy with a $1,900 price target. He expects the board to keep raising the authorization through fiscal 2027 as free cash flow builds.
DA Davidson analyst Gil Luria raised his target last week to $3,000 from $2,100. That is the highest on the Street, and he expects investors to pay a higher multiple over time.
Of 28 analysts covering the stock, 27 rate it Buy and one rates it Hold. The average target of $1,621.67 implies upside of roughly 58% to 64%.
December 9 is the date to mark. That is when Micron can begin repurchases under the new authorization.
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