Micron Technology Inc. (NASDAQ: MU) shares surged by 6.7 percent on Tuesday after it announced a deal with Intel Corporation (NASDAQ: INTC) to manufacture and ship next generation chips. Micron also announced a share repurchase of up to $10 billion.
Micron and Intel will produce the industry’s first 4bits/cell 3D NAND technology. Using a 64-layer structure, the new technology achieves 1 terabit density per die, making it the world’s highest-density flash memory.
The two companies also announced an update progress on the third-generation 96-tier 3D NAND structure, increasing the layers by 50 percent.
Both of the technology utilize CMOS under the array technology to reduce die sizes as well as providing top of the line performance for users.
Micron announced on Monday its share repurchase of up to $10 billion, along with plans to return up to 50 percent of free cash flow to shareholders by the beginning of 2019.
"Our business results have dramatically strengthened Micron's balance sheet and this stock buyback program emphasizes our ongoing commitment to enhancing shareholder value." said Sanjay Mehrotra, president and CEO of Micron.
Micron also raised its third quarter guidance based on the industry’s healthy movement.
The company now forecasts revenue in the range of $7.70 billion to $7.80 billion, up from its previous guidance of $7.20 billion to $7.60 billion. Earnings is expected to be in the range of $3.12 to $3.16, up previously from $2.76 to $2.90 per share.