Micron Technology Shares Jump On $10B Share Repurchase & Intel Deal

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Micron Technology, Inc. (NASDAQ: $MU)


Shares of Micron Technology gained more than 7% during Tuesday’s morning trading session after the company announced a share buyback program that is scheduled to start in fiscal 2019.

Micron Technology Stock Chart

The chipmaker made the announcement during its investor conference which took place in New York City on Monday. Micron said it would buy back $10 billion shares in a move aimed at returning no less than 50% free cash flow (FCF) to investors during its upcoming fiscal year that begins in September.

Micron Chief Executive Officer Sanjay Mehrotra issued the following statement during the conference: “The data-driven economy will transform nearly every industry, and drive secular growth in demand for memory and storage.

Micron is exceptionally well positioned to capitalize on these opportunities and deliver strong business performance and robust free cash flow. Our business results have dramatically strengthened Micron’s balance sheet and this stock buyback program emphasizes our ongoing commitment to enhancing shareholder value.”

The chipmaker giant has also announced that it had signed a deal with Intel Corp. to produce and ship the next generation of chips (4bits/cell 3D NAND) used in digital cameras and flash drives.

Mr. Scott DeBoer, Micron’s Executive Vice President offered the following remarks on the deal: “With [the] introduction of 64-layer 4bits/cell NAND technology, we are achieving 33 percent higher array density compared to TLC, which enables us to produce the first commercially available 1 terabit die in the history of semiconductors. We’re continuing flash technology innovation with our 96-layer structure, condensing even more data into smaller spaces, unlocking the possibilities of workload capability and application construction”

MU stock has gained 45% since the start of 2018 and has more than doubled in the last twelve months. Several analysts such as Rosenblatt’s Hans Mosesmann have also boosted it by giving it high price targets and showering it with positive remarks.

Mosesmann raised his price target on the stock saying it would hit a high of $115. The analyst also praised Micron for hosting one of its best investor days.

Micron Technology, Inc. Company Profile

Micron engages in the manufacture and provision semiconductor systems internationally. The firm has four segments of operation namely: Storage Business Unit, Embedded Business Unit, Mobile Business Unit, and Compute and Networking Business Unit.

It offers DDR4 and DDR3 DRAM products for networking devices, computers, communications equipment, servers, communications equipment, automotive, industrial, and consumer electronics applications.

Micron also offers NAND products with that are electrically rewriteable, storage devices, non-volatile semiconductor memory; solid-state drives for workstations, desktops, and notebooks; enterprise solid-state drives for storage and server applications; and cloud solid-state drives. It also resells flash memory products purchased from other suppliers. Additionally, the company makes other products which are old under other brand names.

Customers can buy Micron products from original equipment manufacturers, retailers, distributors, or get them directly from the company. Micron was founded in 1978. Its head offices are located in Boise, Idaho. –Reuters