Last Update: June 29, 2023, 05:19 AM IST
New York, United States (USA)
A sign marks the entrance to the Micron Technology automotive chip manufacturing plant in Manassas, Virginia, on February 11, 2022. (AP Photo, File)
Shares of the company rose about 3% in trading after the bell. This year they have gained around 34 per cent
Micron Technology beat analysts’ estimates for third-quarter revenue on Wednesday, fueled by demand for its memory chips from the fast-growing artificial intelligence sector.
Shares of the company rose about 3% in trading after the bell. This year he has gained about 34 per cent.
CEO Sanjay Mehrotra said that while customers continued to reduce their excess inventory in the quarter, inventory in the PC and smartphone segments remained near normal levels.
As a result, Micron sees improving pricing trends and growing confidence that the industry has moved past the bottom line in terms of growth and revenue, he said.
Micron reported revenue of $3.75 billion for the quarter ended May 31, beating estimates of $3.65 billion, according to IBES data from Refinitiv.
Growing demand in the generative AI field, which has attracted investor attention following the viral popularity of OpenAI’s ChatGPT, has helped drive sales amid weakness in Micron’s traditional smartphone and PC markets.
Analysts have said the proliferation of generic AI is likely to spur demand for data to feed large language models and could fuel the need for more storage chips.
American chip makers are also getting caught up in the US-China technology dispute. Last month, China’s cyberspace regulator failed a security review of Micron’s products and barred purchases by major infrastructure operators.
Micron, America’s biggest memory chip maker, has said it expects the ban to affect about half of its revenue from China-headquartered companies, which amounts to a low-double-digit percentage of total revenue.
The company reiterated that representatives of the Chinese government have contacted several of its customers, including phone manufacturers, regarding the future use of the company’s products.
Micron’s fourth-quarter revenue for the quarter ending Aug. 31 is $3.9 billion plus or minus $200 million, largely in line with expectations.
The company, which makes DRAM and NAND flash memory chips, reported a net loss of $1.9 billion in the third quarter, compared with a profit of $2.63 billion a year earlier.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,
