Micron Shares Slide as Memory Shortages Pressure Chip Market

Micron Technology shares faced renewed selling pressure in November as concerns about memory-chip pricing and future profitability overshadowed strong financial results and growing demand. The semiconductor manufacturer has experienced a significant stock decline despite expectations of higher earnings in fiscal 2027 and plans for a substantial share repurchase program.

According to Investors.com, Micron shares dropped during Thursday's trading session, November 5, amid broader market movements following the postelection rally. The report also highlighted declines among other companies, including Cava and Dutch Bros, after their earnings announcements.

Separate analysis published by 24/7 Wall St. on November 3 reported that Micron closed at $833.59 after falling 5.78% in Monday's session. The stock had declined 31.3% from its record closing price and reached its lowest closing level since early August.

Despite the retreat, Micron's fiscal 2026 performance remained strong. The company generated $133.19 billion in revenue and non-GAAP earnings per share of $75.52. Management also projected stronger financial performance in fiscal 2027.

A major concern emerged after Kioxia released its December-quarter operating profit forecast of 2 trillion yen, approximately unchanged from 1.99 trillion yen in the September quarter. The outlook fell short of market expectations and raised concerns about whether memory-chip pricing growth was approaching a peak.

Kioxia attributed the relatively flat projection to shipment timing. Its chief financial officer expected growth to accelerate again in the March quarter and said planned production for the following year had already been sold out.

However, demand indicators remained strong. Apple CEO John Ternus described the current memory market conditions during the company's earnings call.

"What we’re seeing with memory pricing right now is unprecedented," said John Ternus, Apple CEO.

Ternus also indicated that Apple expected memory prices to continue increasing, providing evidence that major technology companies were facing substantial pressure from rising component costs.

Micron's valuation has attracted attention because its forward price-to-earnings ratio has fallen below five times projected earnings. According to 24/7 Wall St., the calculation uses analysts' average fiscal 2027 earnings estimate of $176.50 per share, based on projections from 41 analysts.

However, the valuation changes considerably when historical earnings are considered. Based on trailing GAAP earnings of $74.33 per share, Micron traded at approximately 11 times earnings.

The company's current-quarter guidance projected non-GAAP earnings of $38.15 per share, with a margin of error of $1.00, and revenue of $61.5 billion, plus or minus $1.5 billion. Micron also forecast a non-GAAP gross margin of approximately 86.25%, compared with 45.7% a year earlier.

Management said it could not determine when memory supply and demand would return to balance. More than 75% of Micron's fiscal 2027 shipments had already been committed, reflecting substantial advance demand.

Another significant development involves Micron's expanded stock repurchase authorization. The board approved a total authorization of $35.16 billion, including $2.16 billion remaining from a program established in 2018.

Micron's announcement specified the earliest date on which purchases could begin.

"Any repurchases under the stock repurchase program will be made from December 9, 2026," Micron stated.

The company also confirmed that the program has "no expiration date." The authorization permits Micron to repurchase shares but does not require it to spend the entire amount.

The scale of the new authorization substantially exceeds Micron's historical repurchase activity. The company spent $650 million buying 2.5 million shares during fiscal 2026 and $7.84 billion between fiscal 2019 and fiscal 2026. Its largest annual repurchase expenditure during that period was $2.66 billion.

The full authorization represents approximately 3.7% of Micron's market value and could cover roughly 42 million shares out of 1.13 billion outstanding shares.

Micron's financial position provides considerable capacity for capital returns. At the end of fiscal 2026, the company held $73.45 billion in cash and marketable investments against $5.18 billion in debt. Adjusted free cash flow reached $62.31 billion for the full fiscal year, including $33.20 billion in the fourth quarter.

Chief Financial Officer Mark Murphy previously described the company's capital-return capacity and intentions.

"the ability and the intent to increase our capital return," said Mark Murphy, Micron CFO.

However, restrictions under the CHIPS Act affect the timing and conditions of certain repurchases. Purchases are permitted up to specified amounts during the first two years of a five-year period, while the final three years involve additional financial and other conditions.

Analyst earnings expectations have continued moving upward despite the falling share price. During the 30 days covered by the analysis, 28 analysts increased their fiscal 2027 earnings-per-share estimates, while two lowered their projections.

Micron had gained 192.3% during the year, substantially outperforming the S&P 500, which advanced 10.29%. Its average analyst price target stood at $1,562, based on estimates from 49 analysts, approximately 87.4% above the November 3 closing price of $833.59.

Nevertheless, the gap between analyst expectations and the market price reflects uncertainty over how long elevated memory prices and limited supply can persist. Micron's next major financial developments include the potential start of share repurchases on December 9, 2026, and its ability to maintain projected earnings and margins.