Why Micron Stock Rallied on Thursday

Micron Technology shares jumped sharply on Thursday, rising as much as 7.3% and still up 6.6% at 2:04 p.m. ET. The rally was tied to media reports about the company’s upcoming capital allocation plans. The article points to Micron receiving a $6.1 billion subsidy under the U.S. Department of Commerce’s CHIPS Incentive Program in late 2024, which required recipients not to use funds for share repurchases and to refrain from buybacks for a period after signing. In its fiscal 2026 Q3 call in June, CFO Mark Murphy said Micron expects to return 100% of “excess cash,” with share repurchases as the principal return method, and to increase capital returns from Dec. 9, the second anniversary of the agreement signature.