Memory chipmakers SanDisk, Micron, and Western Digital are launching major stock buyback programs as their stocks decline from recent highs. SanDisk announced a $14 billion share buyback authorization on Wednesday, bringing its total exercisable limit to $15.5 billion, while reporting sales of $8.97 billion that rose 372% and beat Wall Street expectations. Micron is expected to announce a buyback after December, when a limit on buybacks due to a chips grant from the U.S. government under the CHIPS Act is set to expire. The buyback surge follows record free cash flows, with the three companies together reporting $25.9 billion in free cash flow in the last reported quarter, up nearly three times from $9.5 billion in the prior quarter. The programs come amid an AI-driven memory boom that has generated surging sales, even as memory stocks pulled back sharply in recent months.
SanDisk Authorizes $14 Billion Buyback, Western Digital Exercises $4 Billion Plan
SanDisk added $14 billion to its share buyback authorization on Wednesday, taking the total exercisable limit to $15.5 billion. The chipmaker reported sales of $8.97 billion, up 372%, beating Wall Street's expectation.
Western Digital is exercising a $4 billion buyback plan it approved in February. Micron has been restrained due to a limit on buybacks as part of receiving grants from the U.S. government under the CHIPS Act, which lifts in December.
UBS said that Micron might announce a buyback then and could repurchase more than 40% of its shares by 2026.
Memory Chipmakers Report $25.9 Billion Combined Free Cash Flow
Micron, SanDisk and Western Digital together reported $25.9 billion in free cash flow in the last reported quarter, up nearly three times from $9.5 billion in the sequentially prior quarter. Micron's quarter ended in May, while the others ended in June.
![Chart showing Micron and Western Digital free cash flow trends]()
Free cash flow for Micron and Western Digital is expected to rise in the coming quarters. Part of that is earmarked for capacity expansion.
Micron Commits $250 Billion US Investment Through 2035, SanDisk Pays $1.165 Billion for Kioxia Partnership
Micron has committed to invest more than $250 billion in the U.S. through 2035, anchored by new DRAM fabs in Boise, Idaho and Clay, New York, while also expanding its Manassas, Virginia facility. The company recently broke ground on a $24 billion NAND fabrication plant in Singapore. Micron is also adding manufacturing capacity in Taiwan following its acquisition of PSMC's P5 fab.
SanDisk is deepening its manufacturing partnership with Kioxia in Japan, extending their joint venture at the Yokkaichi and Kitakami NAND plants through 2034. As part of the deal, SanDisk will pay $1.165 billion between 2026 and 2029 to secure manufacturing services and supply.
![Chart showing memory capital expenditure projections]()
CEO David Goeckeler said SanDisk is focused on building durable free cash flow while reducing the historical cyclicality of the NAND market through long-term customer agreements. "Our technology and products are well positioned to create value for our customers and generate growing and durable free cash flow," he said in the earnings statement.
Memory Stocks Decline Sharply After June Rally
SanDisk's guidance came below analysts' expectations, causing the stock to drop nearly 9% in overnight trading. Memory stocks have tapered off recently, with investors booking profits after sharp rallies until June.
Micron stock plunged 29% in July, marking its worst monthly performance since June 2005. SanDisk declined 47% last month.
![Chart showing memory stock price performance]()
Elon Musk on Tuesday said memory demand is not growing at 20% a year, but is instead rising 200% or more year over year, adding that such dynamics naturally position for a sharp price increase.
FAQ
What buyback did SanDisk announce on Wednesday?
SanDisk announced a $14 billion share buyback authorization on Wednesday, bringing its total exercisable limit to $15.5 billion. The company reported sales of $8.97 billion, up 372%, beating Wall Street expectations.
When can Micron announce a stock buyback?
Micron can announce a buyback after December, when a limit on buybacks due to a chips grant from the U.S. government under the CHIPS Act is set to expire. UBS said Micron could repurchase more than 40% of its shares by 2026.
How much did memory chipmaker stocks decline in July?
Micron stock plunged 29% in July, marking its worst monthly performance since June 2005. SanDisk declined 47% last month. SanDisk's stock also dropped nearly 9% in overnight trading after guidance came below analysts' expectations.
