Last Updated: June 29, 2023, 06:46 IST
New York, United States of America (USA)
An indication marks the doorway of the Micron Technology automotive chip manufacturing plant on Feb. 11, 2022, in Manassas, Va. (AP Photo, File)
Shares of the corporate rose about 3% in buying and selling after the bell. They have gained about 34% this 12 months
Micron Technology beat analysts’ estimates for third-quarter income on Wednesday, pushed by demand for its reminiscence chips from the fast-growing synthetic intelligence sector.
Shares of the corporate rose about 3% in buying and selling after the bell. They have gained about 34% this 12 months.
CEO Sanjay Mehrotra mentioned clients continued to cut back their extra stock within the quarter with inventories within the PC and smartphone segments being near regular ranges.
As a outcome, Micron is seeing improved pricing traits and elevated confidence that the business has handed the underside for progress and income, he added.
Micron reported income of $3.75 billion for the quarter ended May 31, in contrast with estimates of $3.65 billion, in response to IBES information from Refinitiv.
Soaring demand from the generative AI sector, which has garnered heightened investor consideration following the viral reputation of OpenAI’s ChatGPT, has helped prop up gross sales amid weak spot in Micron’s conventional smartphone and PC markets.
The proliferation of generative AI will possible gasoline a soar in demand for information to feed giant language fashions and will increase the necessity for extra storage chips, analysts have mentioned.
U.S. chipmakers are additionally being caught up within the U.S.-China expertise spat. Last month, China’s our on-line world regulator failed Micron’s merchandise in a safety evaluation and barred purchases by operators of key infrastructure.
Micron, the most important U.S. reminiscence chipmaker, has mentioned that it expects the ban to affect about half of its income from China-headquartered corporations, which equates to a low-double-digit proportion of complete income.
The firm reiterated that a number of of its clients together with cellphone producers have been contacted by representatives of the Chinese authorities in regards to the future use of the corporate’s merchandise.
Micron fourth-quarter income of $3.9 billion plus or minus $200 million for the quarter ending Aug. 31, largely according to expectations.
The firm, which makes DRAM and NAND flash reminiscence chips, reported a web lack of $1.9 billion for the third quarter, in contrast with a revenue of $2.63 billion a 12 months earlier.
(This story has not been edited by News18 employees and is printed from a syndicated information company feed – Reuters)
