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Micron Posts Blockbuster Quarter as Board Clears $35.16B Buyback Ceiling

Record contracts and customer deposits give Micron unusual multi‑quarter revenue visibility that could support margins or leave the company exposed to heavy capex and future capacity risks.

Overview

  • Micron reported record fiscal Q4 results on September 30, with about $54.23 billion in revenue and $33.42 in adjusted earnings per share, beating street estimates and showing massive strength from AI and data‑center memory demand.
  • Management disclosed 26 strategic customer agreements and said more than 75% of fiscal 2027 output is committed, backed by roughly $32 billion of customer financial commitments and deposits that create rare forward revenue visibility.
  • The board on October 8 increased the share buyback authorization to $35.16 billion, but CHIPS Act funding terms bar repurchases until December 9, 2026, leaving the timing and scale of actual buybacks as a key near‑term catalyst.
  • Investors remain cautious because Micron is planning very large capital expenditures—about $25 billion cited for the first half of fiscal 2027—to expand HBM and fab capacity, which creates execution risk and could trigger industry supply growth that hurts prices.
  • The market is pricing heavy skepticism into the stock: shares trade around $1,000 at roughly 5.8–6x forward earnings despite aggressive analyst targets up to $3,000, and insiders sold about $90.9 million of stock in recent months, factors that keep sentiment mixed.