BOISE, Idaho, April 1, 2026, 08:08 MDT
- Investors tendered roughly $4.315 billion in Micron notes before the cutoff, plus an extra $140 million came in via guaranteed-delivery.
- Payment is slated for April 3, with purchase prices locked in Tuesday between about $1,048 and $1,080 for each $1,000 in principal, based on the specific note series.
- Micron’s buyback comes on the heels of its decision last month to raise projected capital spending for fiscal 2026 above $25 billion, part of its push to build out AI memory capacity.
Micron Technology on Wednesday reported that investors tendered roughly $4.32 billion across six series of outstanding senior notes before the cash buyback deadline. The company said it plans to accept all validly tendered bonds. That figure could climb to about $4.46 billion—around 82.5% of the $5.4 billion buyback target—if additional notes sent via guaranteed-delivery get counted.
This debt decision lands as Micron enters its biggest investment cycle in years. Just two weeks back, the Boise memory-chip giant bumped its 2026 capital spending forecast up by $5 billion, now topping $25 billion, and flagged another increase in 2027 to ramp up AI-focused manufacturing.
Micron wrapped up its February quarter holding $16.7 billion in cash, marketable investments, and restricted cash. CEO Sanjay Mehrotra remarked on March 18 that memory now counts as a “strategic asset” in AI, and noted the company is putting money into its manufacturing operations to keep pace with customer demand. Micron Technology
The tender offers span notes maturing from 2031 through 2035. On Tuesday, Micron set prices between $1,048.11 and $1,079.93 per $1,000 of principal, varying with maturity. By the cutoff, almost 80% of the targeted principal was tendered.
The news hit right after Micron put up a record $23.86 billion in fiscal Q2 revenue and projected Q3 revenue of $33.5 billion, give or take $750 million. That guidance beat the $24.29 billion consensus from analysts polled by LSEG, according to Reuters.
Micron stands among just three key HBM suppliers—joining Samsung Electronics and SK Hynix—in the high-stakes market for premium memory chips powering AI systems.
Samsung co-CEO Jun Young-hyun called it an “unprecedented supercycle” last month, saying the company is now negotiating three- to five-year agreements with major clients. That strategy shows up as Microsoft, Amazon, Alphabet, and Meta were eyeing around $635 billion in AI infrastructure spending for 2026, though fresh concerns over energy costs have cast some doubt, Reuters said this week. Reuters
The spending spree itself stands out as the real risk here. Mike O’Rourke, chief market strategist at JonesTrading, weighed in after Micron’s results, flagging that the bigger capex plan might just mean the memory shortage is a “temporary phenomenon.” He warned the business could slide back to its “commodity nature” once all the extra capacity goes live. Micron also noted the tender offers still hinge on certain conditions being met. Reuters
Micron stock climbed roughly 4.2% early Wednesday in U.S. trading, recouping some ground lost after last month’s earnings. Investors are eyeing robust AI demand, even as the cost of keeping up rises.
