Micron Technology Inc posted stronger quarterly results than Wall Street on Monday, as data center and electric vehicle makers ramped up demand for its chips, and it forecasts second-quarter sales and profit on expectations of chip shortages in 2022. Will defeat you too.
Micron also revealed that it has struck deals with its own suppliers to ease bottlenecks in its supply chain.
The company manufactures NAND memory chips that serve the data storage market and DRAM memory chips that are widely used in data centers, personal computers, and other equipment. Shares of Micron rose 5.7% to $87.70 in extended trading following the results.
Strong demand and an industry-wide shortage of chips have also allowed Micron, one of the world’s largest memory chip suppliers, to charge higher prices. Micron said data center revenue grew 70% and automotive revenue grew 25%, with automotive growth coming from the increasing amount of memory needed in cars with advanced driver protection systems.
“We are taking dramatic steps and looking at some new model cars,” Micron’s chief business officer Sumit Sadana told Reuters in an interview.
Sadana said Micron executives expect the non-memory chip shortage to begin to subside next year. The shortage is affecting shipments of both cars and personal computers.
“We are starting to see a little bit of improvement on that front. But it will be through calendar year 2022 that a lot of that will improve,” he said.
According to Refinitiv data, the company expects revenue for the second quarter of the current fiscal year to be $7.5 billion, plus or minus $200 million, compared to analysts’ average estimate of $7.27 billion. According to Refinitiv data, the company forecast adjusted earnings per share of $1.95, plus or minus 10 cents, beating analyst estimates of $1.86.
In the first quarter, Micron reported sales of $7.69 billion, according to Refinitiv data, which exceeded analysts’ expectations of $7.67 billion. Micron earned $2.16 per share on an adjusted basis, beating expectations of $2.11 per share.
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