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Micron results beat forecasts, sees chip shortages easing in 2022

Micron projects revenue above estimates on strong demand
Micron projects revenue above estimates on strong demand   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p>By Akash Sriram and Stephen Nellis</p> <p> – Micron Technology Inc on Monday delivered stronger quarterly results than Wall Street expected as data centers and electric vehicle manufacturers drove demand for its chips, and it forecast second-quarter sales and profits will also beat estimates with chip shortages easing in 2022.</p> <p>Micron also disclosed that it has struck deals with its own suppliers to ease bottlenecks in its supply chain.</p> <p>The company makes both the <span class="caps">NAND</span> memory chips that serve the data storage market and the <span class="caps">DRAM</span> memory chips that 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.</p> <p>Strong demand and an industry-wide shortage of the chips have also allowed Micron, one of the world’s biggest memory chip suppliers, to charge higher prices. Micron said data center revenue grew 70% and that automotive revenue grew 25%, with the automotive growth coming from the increasing amount of memory required in cars with advanced driver safety systems. </p> <p>“We are seeing dramatic step ups in some of the new model cars,” Sumit Sadana, Micron’s chief business officer, told Reuters in an interview.</p> <p>Sadana said Micron officials expect the non-memory chip shortages will start to ease next year. The shortages have been stifling shipments of both cars and personal computers.</p> <p>“We are starting to see a little bit of an improvement on that front. But it’ll be through the calendar year 2022 that much of that improvement will occur,” he said.</p> <p>The company expects revenue for the current fiscal second quarter to be $7.5 billion, plus or minus $200 million, compared with 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, according to Refinitiv data.</p> <p>In the first quarter, Micron reported sales of $7.69 billion, above analyst expectations of $7.67 billion, according to Refinitiv data. Micron earned $2.16 per share on an adjusted basis, beating expectations of $2.11 per share.</p> <p/> <p>(This story corrects to add dropped word ‘in’ in paragraph 5)</p> <p/> <p/> </div>