Micron Technology Inc. expects demand for memory chips to remain high, despite the supply of other types of computer chips meeting customer needs, the company said late Wednesday, with revenue and outlook wall He said it exceeded street expectations.
Last year, the COVID-19 pandemic disrupted the supply chain, leaving many manufacturers, such as automakers, dependent on semiconductors to keep their products high quality and dry. When these components become available, these manufacturers will process backlog orders as well as new orders.
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Sanjay Mehrotra, CEO, said memory demand remains high as semiconductor supply shortages subside.
“The shortage of semiconductors will ease over time, so the demand for memory and storage will actually increase. All end applications today, whether analog IC-related, memory-related, or CPU-core-related. , Everything really needs memory and storage, “says Mehrotra.
The CEO predicts that customers who need chips to manufacture their products are “approaching inventory considerations differently than before.”
Micron specializes in DRAM and NAND memory chips. DRAM (Dynamic Random Access Memory) is a type of memory commonly used in PCs and servers, and NAND chips are flash memory chips used in small devices such as smartphones and USB drives. Like most semiconductors, memory chips were in great demand during the COVID-19 pandemic, and prices skyrocketed.
According to the company, DRAM demand is expected to grow by more than 20% annually and NAND growth is expected to be in the mid-30% range.
Micron expects adjusted fourth-quarter net income to be $ 2.20 to $ 2.40 per share, with revenues of $ 8 billion to $ 8.4 billion. Analysts predicted $ 2.18 per share with revenue of $ 7.88 billion.
Micron’s third-quarter net income was $ 1.74 billion ($ 1.52 per share), compared with $ 803 million ($ 71 per share) in the year-ago quarter. Adjusted earnings, excluding stock-based compensation and other items, were $ 1.88 per share, compared to 82 cents in the year-ago quarter. Revenue increased from $ 5.44 billion in the year-ago quarter to $ 7.42 billion.
Analysts surveyed by FactSet forecast adjusted earnings of $ 1.72 per share for $ 7.23 billion in earnings. In late May, Micron said it expects sales to reach more than $ 7.3 billion. Guidance provided at the end of March.. We forecast revenue of $ 1.55 to $ 1.69 per share.
According to Micron, DRAM sales in the third quarter were 73% of revenue, or $ 5.42 billion, up from $ 3.59 billion in the year-ago quarter. NAND, on the other hand, accounted for 24% of sales, or $ 1.78 billion, up from $ 1.67 last year. a billion. According to FactSet, analysts expected DRAM sales to be $ 5.25 billion and NAND sales to $ 1.86 billion on average.
In another release, Micron announced that it would sell its manufacturing plant in Lehi, Utah to Texas Instruments Inc.
49% interest in joint ventures in early 2019, and Earlier this year we announced plans to sell fabs.
Boise, Idaho-based Micron’s share price rose 2.5% in regular sessions to close at $ 84.89, and then remained almost flat in after-hours trading when the results were announced.
In the last three months, Micron’s share price has fallen 1.8%, but the PHLX Semiconductor Index
S & P 500 Index has grown by nearly 10%
Nasdaq Composite Index rose nearly 9%
It increased by 11%. During Micron’s third quarter, shares closed at $ 95.59 on April 12, just below the record high of $ 96.56 set on July 14, 2000.
Micron expects memory demand to remain strong and plans to sell its Utah plant to Texas Instruments.
http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-74EA-1EF2E14CBD6D%7D&siteid=rss&rss=1 Micron expects memory demand to remain strong and plans to sell its Utah plant to Texas Instruments.