(Bloomberg) — Micron Technology Inc., the largest U.S. maker of memory chips, jumped in late trading after giving an upbeat forecast for the current quarter, helped by demand for semiconductors in networking, data centers and vehicles.
Sales will be about $7.5 billion in the period ending in February, Micron said Monday in a statement. That compares with analysts’ average estimate of $7.32 billion, according to data compiled by Bloomberg. Excluding certain items, profit will be about $1.95 a share, the company said. Analysts projected $1.86.
Under Chief Executive Officer Sanjay Mehrotra, Micron is benefiting from the use of memory chips in a wider range of products — from home appliances to vehicles. That’s made it less dependent on the personal computer and smartphone market for revenue.
In the three months ended Dec. 2, the Boise, Idaho-based company posted revenue of $7.69 billion, up 33% from a year earlier. Net income was $2.3 billion, or $2.04 a share.
Micron’s shares rallied as much as 7% in extended trading following the report. They had gained 9.1% this year through Monday’s close, lagging behind an overall surge in chip-related stocks. The Philadelphia Stock Exchange Semiconductor Index has gained 34% this year.
Micron competes with South Korea’s Samsung Electronics Co., SK Hynix Inc. and Japan’s Kioxia Holdings Corp. in a memory chip market that has consolidated over the past decade. Samsung dominates production of both major types of chips. DRAM chips hold data temporarily, helping processors crunch data. Nand flash memory, meanwhile, acts as permanent storage in phones and computers.
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