Micron Announces Cash Tender Offer For Outstanding Senior Notes Worth $5.4B — MU Stock Declines

• MU stock has now declined nearly 18% since Micron announced its second-quarter results last week.
• The company also announced plans to build a second chip manufacturing facility in Taiwan after completing the acquisition of Powerchip Semiconductor’s P5 site.
• Retail sentiment on Stocktwits surrounding Micron remained in the ‘extremely bullish’ territory, with users noting that paying off debt is a positive development.

Micron Technology Inc. (MU) on Wednesday announced a cash tender offer for outstanding senior notes worth $5.4 billion.

The company said that its tender offer includes notes due from 2031 through 2035, while adding that the offer will expire at 5 p.m. ET on March 31, 2026.

The development follows Micron’s fiscal second-quarter (Q2) results reported last week, with earnings per share (EPS) of $12.2 on revenue of $23.86 billion. Wall Street analysts expected an EPS of $8.97 on revenue of $19.54 billion, according to Fiscal.ai data. MU stock has now declined nearly 18% since it announced its Q2 results last week.

Micron Technology shares fell nearly 4% in Wednesday morning’s trade. Retail sentiment on Stocktwits around the company trended in the ‘extremely bullish’ territory at the time of writing.

Micron Plans Second Chip Facility In Taiwan

Micron announced last week that it is planning to build a second chip manufacturing facility in Taiwan after it completed the acquisition of Powerchip Semiconductor’s P5 site.

The company said that the new site will support its efforts to expand the supply of Dynamic Random Access Memory (DRAM) products, including High Bandwidth Memory (HBM) modules, which are in demand because of their application in AI infrastructure.

“Memory is a strategic asset that dictates AI product performance, and the acquisition and phased ramp of this site strengthens our ability to capitalize on these significant opportunities,” said  Manish Bhatia, executive vice president of global operations at Micron.

Google’s TurboQuant Likely A Negative For Memory Makers, Says Wells Fargo

Meanwhile, Alphabet Inc.’s (GOOG, GOOGL) Google announced TurboQuant on Tuesday. TurboQuant is a new compression algorithm that optimizes memory overhead for large language models and vector search engines.

Analysts at Wells Fargo stated in a new note on Thursday that Google’s new algorithm could be viewed as a negative for memory makers, according to TheFly. Publicly listed memory makers in the U.S. include Micron and SanDisk Corp. (SNDK), which could be affected by Google’s announcement.

Wells Fargo analysts added that Google’s TurboQuant could result in up to an eightfold increase in speed while significantly reducing memory overhead.

In its announcement, Google stated that TurboQuant can allow for building and querying large vector indices with minimal memory, near-zero preprocessing time, and state-of-the-art accuracy.

How Did Stocktwits Users React?

One bullish user on the platform called Micron a cash cow while adding that the company is improving its books on a daily basis.

Another user stated that paying off debt is a good thing.

MU stock is up 33% year-to-date and 302% over the past 12 months. The Vanguard Total Stock Market Index Fund ETF (VTI) and Vanguard S&P 500 ETF (VOO) are up 15% over the past 12 months.

Also See: VNRX Stock Soars 34% Pre-Market — What's Driving The Rally?

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