Micron Technology Inc. (MU) keeps giving investors what they want.
After Monday's market close, the chipmaker announced a $10 billion share repurchase program at its Investor Day conference in New York City, sending its shares higher by about 3% in after-hours trading.
Earlier in the day, the company improved its guidance for the current quarter and also got a boost from news that the the prospects of a trade war between the U.S. and China were cooling, which could be good for chip companies' M&A prospects. During the day's session, Micron's stock closed up 3.9% to $55.48.
The company's chief financial officer and senior vice president David Zinsner said Monday afternoon that the buybacks will begin in its 2019 fiscal year, which starts in September, in conjunction with Micron's plans to return at least 50% of free cash flow to shareholders next year.
Zinsner said that the decision received "great support" from the company's board and management team.
"I think it really makes sense for the company and for the shareholders," he said. Zinsner also told investors that the company plans to be cash flow positive by the end of next quarter or the end of the year.
So far this year, Micron shares have increased 39% and have doubled over the last 12 months.
TheStreet presents on May 22: "How to Stomach Market Volatility." Hosted by Fisher Investments, the exclusive live webinar will give you the tools to successfully navigate market volatility and discuss why having a wealth manager is more critical than ever before. Quickly register for the event here.