To The Moon

$Micron Technology(MU)$ one with my favs. Why $Micron Technology(MU)$  is still a buy?

I still see a strong investment case for Micron Technology (MU), but I want to distinguish between two things:

* Why Micron’s underlying business remains attractive.

* Whether its share price has already run too far ahead of its future earnings.

My concern is increasingly the second one, rather than the business itself.

1. Why I’m still bullish on Micron

The biggest reason is that AI infrastructure needs much more than GPUs. It needs enormous quantities of high-performance memory.

Micron supplies three important products:

* HBM (High Bandwidth Memory): Essential for advanced AI accelerators.

* DRAM: Used in AI servers, conventional servers and computers.

* NAND: Used in enterprise SSDs and data-centre storage.

The key development is that memory supply is becoming constrained while AI demand continues to grow.

Micron’s September 2026 results were extraordinary:

Metric FY2026 Q4

Revenue US$54.23B

Non-GAAP EPS $33.42

Non-GAAP gross margin 87%

Adjusted free cash flow $33.2B

Its Q1 FY2027 revenue guidance was an astonishing US$61.5B ± $1.5B. Micron Investors +1

This is why I haven’t abandoned the Micron investment thesis.

2. What happened to the buyback?

This is actually an important development that I think the market may be underestimating.

US$35.16 billion authorised

On 12 October 2026, Micron disclosed that its board had increased its discretionary share-repurchase authorisation to US$35.16 billion.

However, there is a catch:

* The expanded programme cannot begin until 9 December 2026.

* Restrictions associated with Micron’s CHIPS Act funding explain the delay.

* Micron bought back only US$650 million of shares during FY2026.

* Management intends to return excess cash primarily through share repurchases. Investing.com +1

Why this matters to shareholders

A share buyback reduces the number of shares outstanding, potentially increasing earnings per share and each remaining shareholder’s ownership percentage.

But remember, a US$35.16 billion authorisation is not a commitment to spend the entire amount immediately.

What about dividends?

Micron’s quarterly cash dividend remains just US$0.15 per share.

So this is not a high-dividend investment. The potential shareholder return is primarily through earnings growth and buybacks, rather than dividend income. Quarterly results +1

3. What about the employee pay rise?

There is another development worth watching.

Micron’s Taiwan Taoyuan workforce has been involved in a dispute over employee bonuses and compensation.

Reports in October indicated that workers voted overwhelmingly to authorise a strike, seeking substantial bonus reform and a greater share of company operating profits.

This is worth monitoring because Taiwan is an important part of Micron’s manufacturing footprint. A prolonged strike could affect production and customer deliveries. Simply Wall St

I would distinguish this employee compensation issue from the shareholder buyback programme: they are separate matters.

4. Why has Micron pulled back despite such good results?

This is the part investors need to understand.

Micron has already enjoyed an enormous rally, gaining more than 270% year-to-date at the time of the October buyback announcement.

It subsequently traded around 25% below its June record high, according to an October 30 report. Investing.com +1

Three concerns explain the volatility:

* Profit-taking: Investors are locking in substantial gains.

* Cyclical risk: Memory is historically cyclical. Today’s shortage can eventually become tomorrow’s oversupply.

* Competition: SK Hynix, Samsung and emerging Chinese memory manufacturers are investing heavily in capacity.

I would particularly watch Chinese competitor CXMT. If it increases DRAM production significantly, it could eventually weaken Micron’s pricing power.

5. My investment outlook

Here is how I would assess Micron:

Factor My assessment

AI memory demand

HBM business

Financial performance

Buyback programme

Memory oversupply risk

Current valuation risk

My conclusion: I remain bullish on Micron over the next 2–3 years, but I would not buy aggressively after its enormous rally.

I prefer accumulating on meaningful pullbacks rather than chasing momentum.