Reminiscence and storage are integral to digital transformation, which can function a key enterprise driver for Micron Expertise by means of 2022, the memory-chip producer’s CEO Sanjay Mehrotra instructed CNBC Friday.
Whereas enterprise adoption of digital expertise was accelerated by the office shift as a result of coronavirus pandemic, Mehrotra initiatives that the necessity for quicker knowledge processing will likely be vital for future enlargement of worldwide economies.
“We’re completely in a candy spot of the market traits and we’re very properly positioned to deal with them,” he stated in a “Mad Cash” interview with Jim Cramer.
The feedback come someday after the Boise, Idaho-based firm launched better-than-expected ends in its first quarter of the 2021 fiscal yr. Micron earnings got here in at 78 cents per share, 7 cents above estimates, on income of $5.77 billion, up 12% from a yr in the past. Analysts projected income of $5.66 billion for the quarter ending Dec. 3.
Micron additionally cited the state of the dynamic random entry reminiscence chips (DRAM) market as a supply of its upbeat steering for the present quarter. The DRAM enterprise, which provides chips to retailer knowledge in a reminiscence cell, grew virtually 17%.
At a time the place demand for synthetic intelligence, 5G and cloud, which all require extra knowledge processing, is excessive, the reminiscence trade is experiencing tightness in areas of the DRAM market, in accordance with Mehrotra.
Micron counts Arrow Electronics, HP, Apple and Huawei amongst its prospects, in accordance with FactSet.
“For the primary time within the historical past of the corporate, Micron is main the trade in DRAM expertise and in addition to the NAND expertise,” Mehrotra stated within the interview Friday. “We’re completely enthusiastic about 2021 and post-Covid. The synchronized enlargement of the worldwide economies goes to proceed properly into 2022 timeframe as properly.”
Shares of Micron slipped 2% to shut at $77.42 after buying and selling at session excessive worth ranges not seen since 2000. The inventory gained almost 40% in 2020.