"Fiscal second-quarter revenue will be $18.3 billion to $19.1 billion, the company said in a statement Wednesday. Analysts had estimated $14.4 billion on average for the period. Excluding some items, profit will be $8.22 to $8.62 a share, compared with a projection of $4.71. Micron shares jumped as much as 17% after markets opened in New York on Thursday, their biggest intraday gain since April 9."
"Micron is positioned as an essential AI enabler, Chief Executive Officer Sanjay Mehrotra said in the statement. And we are investing to support our customers' growing need for memory and storage. The voracious appetite for AI computing components is outstripping supply, benefiting companies like Micron. But there also have been shortages of the less sophisticated memory used in personal computers."
"That stems in part from the memory industry shifting production to more advanced technology for AI data centers. This is the most significant disconnect between demand and supply in terms of magnitude as well as time horizon that we've experienced in my 25 years in the industry, Executive Vice President of Operations Manish Bhatia said in an interview. PC makers such as Dell Technologies Inc. and HP Inc. have warned investors that they expect memory-chip shortages in the coming year bringing higher component prices."
Fiscal second-quarter revenue is forecast at $18.3 billion to $19.1 billion, well above analysts' average estimate of $14.4 billion. Adjusted profit is projected at $8.22 to $8.62 per share versus a projected $4.71. Shares rose as much as 17% intraday and had gained 168% year-to-date, closing at $225.52. Micron is positioned as an AI enabler and is investing to meet growing customer demand for memory and storage. Strong demand for AI computing components is outstripping supply, driving price increases and benefiting memory suppliers. Production shifts toward advanced chips for AI data centers have caused shortages of less sophisticated PC memory, giving Micron leverage with customers and supporting near-term higher memory prices.
Read at www.mercurynews.com
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