The stock gained about 4% in extended trading following the announcement. It had been up 57% this year — in line with broader gains for chip equities — driven by investor optimism that an inventory glut is easing.
Micron Technology, the largest US maker of memory semiconductors, gave a strong revenue forecast for the current period, indicating that data center demand is helping make up for a slowly recovering market for personal computers and smartphones.
Fiscal second-quarter revenue will be US$5.1 billion to US$5.5 billion, the company said in a statement Wednesday. That compares with an average analyst estimate of US$4.99 billion. Excluding certain items, Micron will have a loss of 21 US cents to 35 US cents — narrower than the 62 US cents projected by analysts.
