Micron believes in itself and resumes share buybacks

In May 2018, the American company Micron Technology began repurchasing its own shares, but by December 2022, market conditions forced the memory chip manufacturer to suspend the program. Based on the current favorable outlook for the segment, Micron has decided to resume share repurchases, as noted in an official filing with US regulators.

Image source: Micron Technology

According to Bloomberg, until recently, Micron remained one of the 24 companies whose shares are included in the NASDAQ 100 index, which have not bought the shares over the past year. The capitalization of these 24 companies last year decreased on average by 9.5 %, while the index itself grew by almost 10 %. Now, in the memory of the Micron leadership, more favorable conditions have developed, which allows you to return to the redemption of their own shares from investors. This news immediately caused an increase in their quotes by about 5 % at auction in New York.

Much of Micron’s management’s enthusiasm is due to favorable conditions in the HBM memory market. Sales of HBM3E alone brought the company $100 million in revenue in the last quarter; in the current quarter, all types of supplied HBM will bring in several hundred million US dollars. By August 2025, Micron’s core revenue will already be measured in billions of dollars. It is also important to take into account that Micron has certified its HBM3E memory for use in Nvidia H200 accelerators, and this allows it to count on good revenue provided that high demand for components for artificial intelligence systems continues. Micron management is aware of the difficulties that accompany scaling HBM production. The complexity of certification combined with these difficulties, according to Micron representatives, literally forces memory shipments to move with the “handbrake on.”