Ross Gerber Expects Micron to Buy Back 'Tons of Stock' in December — 'A Big Buyer Is Coming Soon'
Key takeaways
- Micron is poised to launch a significant share‑repurchase program in December, which could lift the stock and improve earnings metrics.
- $2.2 billion remaining under current authorization
- $68.3 billion net cash balance
- $37 billion buyback projected in 2027
What happened
Micron Technology Inc. (NASDAQ: MU) is expected to start a large share‑repurchase program in December once the CHIPS Act restrictions expire. CEO Ross Gerber Kawasaki said the only thing holding Micron back is the CHIPS Act, and that a "big buyer"—the company itself—will begin buying back "tons of stock" on December 9. CFO Mark Murphy confirmed on the September earnings call that Micron will seek a larger repurchase authorization and will commence stronger capital return from December 9, in…
Why it matters
The timing of the buyback signals that Micron will return excess cash to shareholders, potentially supporting the stock price and improving earnings per share. The announcement also indicates that regulatory constraints are lifting, which may affect Micron’s capital allocation strategy.
Short-term and longer-term
Short-term. In the next few days, MU could see a short‑term rally as the market prices in the December buyback trigger.
Longer-term. Over the coming months, the buyback program could improve MU’s earnings per share and return on equity, supporting a higher valuation.