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Micron’s stock buybacks explained: When & why the chipmaker repurchases shares

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Memory chip maker Micron Technology (MU) has been making headlines for its red-hot earnings, reflecting surging demand for AI infrastructure.

But while the company has been obliterating Wall Street’s estimates with its blockbuster revenue growth and profits, something else has been happening in the background.

Micron has been quietly reducing its share count.

Along with dividends, share buybacks are another way Micron can return excess cash to shareholders.

That’s because every time Micron repurchases shares, it reduces the number of shares outstanding, giving shareholders a slightly larger stake in the company.

And because earnings are divided among fewer shares, buybacks can increase earnings per share (EPS), which can be a boon to longer-term investors — so long as the company’s earnings continue to grow.

Here’s everything you need to know about Micron’s stock buybacks.

When did Micron last buy back shares?

According to company press releases, Micron repurchased $300 million in shares in fiscal Q1 2026 (a three-month period ending November 2025) and $350 million in fiscal Q2 (ending February 2026), before pausing in fiscal Q3.

Rather than repurchasing shares during fiscal Q3, Micron raised its dividend and continued investing aggressively in AI manufacturing. The company plans to spend approximately $27 billion this fiscal year as it races to meet surging demand for high-bandwidth memory.

Related: How many employees does Micron have in 2026? Its workforce, locations, and layoffs explained

When did Micron’s buyback authorization start?

Micron’s buyback program actually began in 2018, when its board authorized $10 billion in share repurchases.

For long-term investors, that means each remaining share of Micron represents a slightly larger ownership stake in the company and, thus, a larger claim on future earnings.

It’s important to note that this plan has no expiration date and that management is not obligated to spend the full amount, so it can afford to be judicious.

Will Micron restart its stock buybacks?

Absolutely. In fact, on its earnings call, Micron’s CFO, Mark Murphy, said that while Micron recently increased its dividend, the primary way it plans to return value to shareholders is through stock repurchases.

Micron CEO Sanjay Mehrotra has also said the company’s buyback program “emphasizes our ongoing commitment to enhancing shareholder value.”

Fortune reported that Bank of America analysts estimate the company could repurchase as much as $31.7 billion worth of stock during fiscal 2027.

While Micron itself has not announced buybacks on that scale, this projection highlights the potential magnitude of future capital returns — so long as AI-driven demand continues.

Related: Does Micron pay dividends? Its yield and payouts explained

Are buybacks better than dividends?

Investors may be more familiar with dividends, but stock buybacks may be the more tax-efficient shareholder reward. 

That’s because dividends are taxed as ordinary income in the calendar year they are distributed. Tax liability on buybacks, on the other hand, is deferred until an investor sells their stock.

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Furthermore, buybacks reduce share count, which can increase earnings per share (EPS) if earnings remain stable or grow.

Dividend cuts or suspensions, on the other hand, can be painful for a company — something Micron learned the hard way in the 1990s.

Buybacks also give Micron flexibility in managing capital while navigating the often-volatile semiconductor sector, where conditions can change quickly.

Related: Intel’s stock split history (& prospects) explained