Micron results exceed expectations, see chip shortages abate in 2022

Micron Technology’s SSD for data center customers is showcased at a product launch event in San Francisco, USA on October 24, 2019. REUTERS / Stephen Nellis

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Dec.20 (Reuters) – Micron Technology Inc (MU.O) on Monday posted better quarterly results than Wall Street expected as data centers and electric vehicle manufacturers boosted demand for its chips, and it expects that second quarter sales and profits will also exceed estimates. with a decrease in flea shortages in 2022.

Micron also revealed that it has made deals with its own suppliers to alleviate bottlenecks in its supply chain.

The company manufactures both NAND memory chips which serve the data storage market and DRAM memory chips which are widely used in data centers, personal computers and other devices. Micron shares rose 5.7% to $ 87.70 in extended trading after the results.

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Strong demand and an industry-wide chip shortage has also allowed Micron, one of the world’s largest memory chip suppliers, to charge higher prices. Micron said data center revenues increased 70% and automotive revenues increased 25%, with automotive growth stemming from the increasing amount of memory required in cars equipped with driver safety systems. advances.

“We are seeing some dramatic advancements and some of the new car models,” Sumit Sadana, Micron’s commercial director, told Reuters in an interview.

Sadana said Micron officials expect shortages of memoryless chips to start easing next year. Shortages have stifled shipments of cars and personal computers.

“We’re starting to see a little improvement on this front. But it will be in the calendar year 2022 that much of that improvement will happen,” he said.

The company expects revenue for the current fiscal second quarter to be $ 7.5 billion, plus or minus $ 200 million, against an average analyst estimate of $ 7.27 billion, the data shows. by Refinitiv. The company is forecasting adjusted earnings per share of $ 1.95, plus or minus 10 cents, beating analysts’ estimates of $ 1.86, according to data from Refinitiv.

In the first quarter, Micron reported revenue of $ 7.69 billion, higher than analysts’ expectations of $ 7.67 billion, according to data from Refinitiv. Micron earned $ 2.16 per share on an adjusted basis, beating expectations of $ 2.11 per share.

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Reporting by Akash Sriram in Bengaluru and Stephen Nells in San Francisco; Editing by Aditya Soni and David Gregorio

Our standards: Thomson Reuters Trust Principles.


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