In response to the CEO, Micron is within the “candy spot” of market traits for reminiscence chips
Memory and storage are an integral part of the digital transformation that will act as the key business driver for Micron Technology through 2022, Sanjay Mehrotra, CEO of the memory chip maker, told CNBC on Friday.
While the adoption of digital technologies in businesses has been accelerated by job relocations due to the coronavirus pandemic, Mehrotra believes the need for faster computing will be critical to the future expansion of the global economy.
“We are absolutely in a sweet spot of market trends and we are very well positioned to address them,” he said in a Mad Money interview with Jim Cramer.
The comments come a day after the Boise, Idaho-based company posted better-than-expected results in the first quarter of fiscal 2021. Micron’s earnings were 78 cents per share, 7 cents above estimates, on sales of $ 5.77 billion, up 12% year over year. Analysts forecast sales of $ 5.66 billion for the quarter ended December 3.
Micron also cited the state of the dynamic random access memory (DRAM) market as the source of its optimistic forecast for the current quarter. The DRAM business, which supplies chips for storing data in a memory cell, grew by almost 17%.
At a time when the demand for artificial intelligence, 5G and the cloud, all of which require more data processing, is high, the storage industry is tense in areas of the DRAM market, according to Mehrotra.
According to FactSet, Micron Arrow Electronics, HP, Apple and Huawei are among its customers.
“For the first time in the company’s history, Micron is a leader in DRAM technology and NAND technology,” Mehrotra said in an interview on Friday. “We are absolutely excited about 2021 and after Covid. The synchronized expansion of the global economy will continue until 2022.”
Micron’s shares fell 2% to $ 77.42 after trading at high levels not seen since 2000. The stock gained almost 40% in 2020.