Micron Prepares Share Buybacks After CHIPS Act Restrictions End

Micron Technology, Inc. is preparing for significant capital returns after CHIPS Act buyback restrictions expire in December 2026. The semiconductor company currently holds $24.4 billion in net cash, a reserve that could allow it to retire up to 12% of its outstanding shares.

Financial performance has been bolstered by record NAND results, specifically within the data center SSD segment. Revenue in this area surpassed $5 billion in a single quarter, doubling sequentially as AI-driven demand and pricing power increased.

Despite these gains, the company faces long-term margin risks. These challenges stem from heavy capital expenditures and a rising cost-per-bit. Micron expects to support near-term earnings through supply discipline and strategic customer agreements.