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Micron Buried One Sentence About Dec. 9 - It Could Begin Retiring 12% Of Its Shares
Seeking Alpha • • business
Key Points:
- Micron Technology is considered a Strong Buy due to underestimated growth in SSD/NAND markets and upcoming strategic capital return opportunities beyond AI and high-bandwidth memory (HBM) trends.
- The company reported data center SSD revenue exceeding $5 billion in a quarter, doubling sequentially, driven by AI demand and strong pricing power in NAND products.
- Micron holds $24.4 billion in net cash, with CHIPS Act buyback restrictions set to lift in December 2026, potentially allowing the company to repurchase up to 12% of its shares and increase capital returns.
- Despite long-term margin risks from rising cost-per-bit and heavy capital expenditures, near-term earnings are supported by strategic customer agreements and disciplined supply management.
- The article highlights that Wall Street's focus on HBM memory may overlook Micron’s broader growth drivers and capital return strategies.
