Memory and storage are integral to digital transformation, which can function a key enterprise driver for Micron Technology by 2022, the memory-chip producer’s CEO Sanjay Mehrotra informed CNBC Friday.
While enterprise adoption of digital expertise was accelerated by the office shift resulting from the coronavirus pandemic, Mehrotra initiatives that the want for quicker information processing will likely be important for future enlargement of world economies.
“We are absolutely in a sweet spot of the market trends and we are very well positioned to address them,” he mentioned in a “Mad Money” interview with Jim Cramer.
The feedback come sooner or later after the Boise, Idaho-based firm launched better-than-expected outcomes in its first quarter of the 2021 fiscal 12 months. Micron earnings got here in at 78 cents per share, 7 cents above estimates, on income of $5.77 billion, up 12% from a 12 months 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 steerage for the present quarter. The DRAM enterprise, which provides chips to retailer information in a reminiscence cell, grew nearly 17%.
At a time the place demand for synthetic intelligence, 5G and cloud, which all require extra information processing, is excessive, the reminiscence trade is experiencing tightness in areas of the DRAM market, in response to Mehrotra.
“For the first time in the history of the company, Micron is leading the industry in DRAM technology and as well as the NAND technology,” Mehrotra mentioned in the interview Friday. “We are absolutely excited about 2021 and post-Covid. The synchronized expansion of the global economies is going to continue well into 2022 timeframe as well.”
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.