Micron Technology Inc (MU.O) reported better-than-expected quarterly earnings on Monday, citing increased demand for its chips from data centers and electric vehicle manufacturers, and forecasting that second-quarter sales and profits will similarly above expectations, with chip shortages easing in 2022.
Micron also revealed that it had reached agreements with its own suppliers to alleviate supply chain bottlenecks. The company manufactures both NAND and DRAM memory chips, which are widely utilized in data centers, personal computers, and other devices. Following the report, Micron’s stock gained 5.7 percent to $87.70 in extended trade.
Micron, one of the world’s largest memory chip providers, has been able to raise prices due to rising demand and an industry-wide shortage of chips. Micron reported a 70% increase in data center sales and a 25% increase in automotive revenue, with the latter driven by the increased quantity of memory required in automobiles with enhanced driver safety systems.
According to Refinitiv data, the business expects revenue for the current fiscal second quarter to be $7.5 billion, plus or minus $200 million, compared to analysts’ average expectation of $7.27 billion. According to Refinitiv data, the business anticipated adjusted earnings per share of $1.95, plus or minus 10 cents, topping analyst projections of $1.86.
According to Refinitiv statistics, Micron recorded revenue of $7.69 billion in the first quarter, exceeding analyst projections of $7.67 billion. On an adjusted basis, Micron earned $2.16 per share, exceeding forecasts of $2.11 per share.
