UBS Projects Micron Will Buy Back More Than 40% Of Shares By 2028 On $400 Billion Cash Flow
UBS projects Micron will generate over $400 billion in free cash flow through 2028, providing the funding to buy back more than 40% of its outstanding shares by the end of the year. The initiative follows the expiration of a buyback restriction set to lapse in December 2026.
The projection builds on a Morgan Stanley model forecasting the memory chip maker to report $389 billion in combined operating income in 2026 and 2027, supported by operating margins between 81% and 87%. High-bandwidth memory capacity is fully committed through 2026 under multi-year contracts, with the manufacturer supplying one of only three global vendors for Nvidia and AMD graphics processors. The specialized memory market is projected to grow from $35 billion in 2025 to $100 billion by 2028, with order books already extending into the following year.
From the sources (6 posts)
@milkroadaiIf you're bearish on memory stocks, now is a good time to change your mind before the next run up (Save this). Morgan Stanley just made one of the most aggressive margin calls on Micron in the current cycle, projecting gross margins could
@stocksavvyshayMorgan Stanley projects $MU gross margins could reach 90% in 2027 supported by 16 supply agreements with floor pricing and HBM sold out through 2027. That contracted structure combined with a mix shift toward higher-margin HBM and data-cen
@milkroadaiRT @MilkRoadAI: If you're bearish on memory stocks, now is a good time to change your mind before the next run up (Save this). Morgan Stan…
@stocksavvyshayUBS says $MU could repurchase more than 40% of its shares by the end of 2028 once its buyback restriction expires in December 2026. The firm expects Micron to generate over $400B in free cash flow through 2028 which could fund the repurcha
@milkroadaiMorgan Stanley just modeled $400 billion in Micron profits over the next two years and UBS says the company could buy back over 40% of its shares by 2028 with the cash (Save this). Morgan Stanley's model has Micron generating $172.9 billio
@milkroadaiRT @KyleReidhead: This is WILD UBS is projecting over $400 billion of Micron free cash flow through 2028 Enough to buyback more than 40%…