Micron Technology (MU) has expanded its share buyback authorization to $35.16 billion, with repurchases under the plan set to begin on December 9. The company approved the increase on October 8, after Micron stock gained 247% this year. Strong demand for memory chips used in AI data centers has helped drive the rally.
The new authorization adds $33.03 billion to the $2.16 billion remaining under Micron’s 2018 buyback plan. The added amount is based on adjusted free cash flow for the quarter ended September 3, 2026, after accounting for dividends and certain CHIPS Act grants.
Why Micron Is Expanding Its Buyback
Micron’s strong cash flow gives it room to buy back more shares. The company reported $33.2 billion in adjusted free cash flow for the quarter ended September 3, 2026. This helped support the expanded authorization, which adds $33.03 billion to the $2.16 billion left under its 2018 plan.
Micron is also spending to meet rising demand for high-bandwidth memory (HBM), which powers AI systems. The company needs to fund new production capacity while returning cash to shareholders. Its cash flow will help determine how much it can spend on both.
Still, the $35.16 billion authorization does not mean Micron will spend the full amount. Its earlier buyback program saw annual repurchases range from zero to $2.66 billion. The company’s actual spending will depend on how much cash it generates and how much it needs to invest in its business
What MU Investors Should Watch Next
The buyback gives Micron another way to return cash to shareholders. By reducing the number of shares in circulation, repurchases can lift earnings per share if profits hold up. However, with the stock already up 247% this year, the benefit will also depend on how much Micron pays for its shares.
Meanwhile, memory demand can change as chipmakers add production capacity. If supply catches up with demand, prices could fall and weigh on Micron’s earnings. A weaker memory market could also limit the cash available for buybacks.
Is MU Stock a Buy?
Micron Technology’s stock has a consensus Strong Buy rating among 28 Wall Street analysts. That rating is based on 27 Buy and one Hold recommendations issued in the last three months. The average MU price target of $1,621.67 implies 64% upside from current levels.
