Off The Call: MU (+15.8%)...

Research evidence excerpt

Off The Call: MU (+15.8%)...

Specialist Sales J P M O R G A N

24 June 2026

ramp, but also underscored the trade ratio continues to rise (a margin headwind as they ramp).

• Capital return: Management confirmed they are "absolutely committed to capital return," with share repurchase as the

principal mechanism (After debt repayment and normal dividend growth); the capital return program begins December 9,

targeting 100% of excess cash over time. They did not push back when analysts flagged that they can buy back a huge %

of the company.

• FY2027 capex was soft-guided "higher than the mid-40s%.” This seems roughly in-line with the net CapEx I’d

been hearing people expect.

Early question/feedback

• Bulls are suggesting that additional SCAs could contain even better terms, as there’s a rush to get deals signed (and folks have

been asking us what this means for Asian competitors), as well as arguing 1) that the E and the B are understated (because of

FCF) and 2) we deserve a higher multiple. Some are also making the case that new capacity unlocks at higher prices are going

to support higher revenue into strong operating leverage as new capacity comes online. Early indications seem to be that folks

are getting F27 EPS upside to $160~170.

• Bears are making the case that SCAs could become an upside cap, and arguing that companies will walk away in the case of a

downturn, which some are trying to argue could be hastened by China supply that’s underestimated as benign (not our view).

Appreciate to hear your feedback!

First Take: MU (+11.8%)...

Joshua Meyers

+1 617 310 0767

joshua.meyers@jpmorgan.com

Huge beat of buyside expectations both on revenue margins, leading to a 12% earnings beat of my buyside bars. The guide is for

an eye-popping 86% GM and a 10% beat of my Buyside Bars.