Wolfe Research kept its Outperform rating and $1,500 price target for Micron on Sept. 23, projecting buybacks worth up to 25% of its market value through 2027. If memory-market tightness persists into 2028, Wolfe says capital returns could exceed 50% of market cap.
Micron’s Q3 FY2026 results included record revenue of $41.46 billion, operating cash flow of $25.39 billion and adjusted free cash flow of $18.30 billion. The article says non-cancelable, take-or-pay customer agreements cover significant DRAM and NAND volumes and involve $22 billion in customer cash deposits and commitments.
The article flags memory-market cyclicality as a risk: weaker pricing before 2027 could reduce free cash flow and limit repurchases. It also cites rising costs for HBM4 and 1-gamma production and heavy investment in factories and advanced packaging; Micron’s net capital expenditures were $7.1 billion in Q3.
