Micron forecasts revenue above estimates, sees surge in data center demand

(Reuters) – Micron Technology Inc (MU.O) forecast current-quarter revenue above analysts’ estimates on Wednesday and said a surge in demand from data center operators could fuel supply shortages.

Notebooks that support work-from-home and virtual learning are increasingly in demand, Chief Executive Officer Sanjay Mehrotra said on a post-earnings call with analysts.

Authorities around the world have locked down cities and enforced severe restrictions on travel as part of attempts to contain the rapidly spreading virus.

He noted that datacenter business in China was boosted by increased gaming, e-commerce and remotework activities.

The company is moving supply from smartphone to service the strength in data center markets, he said, adding the demand could lead to supply shortages.

“We are also encouraged to see manufacturers in China increasingly returning to full production, and we have recently started to see China smartphone manufacturing volumes recover,” Mehrotra said.

The company said two of its employees had tested positive for the coronavirus, and are receiving medical attention.

The Idaho-based company forecast third-quarter revenue in the range of $4.6 billion to $5.2 billion, the midpoint of which was above analysts’ estimates of $4.87 billion.

The company’s shares rose 5% in extended trading as the estimate followed warning of sales hit by other semiconductor makers such as Apple supplier Skyworks Solutions Inc (SWKS.O).

Source: Read Full Article