Micron profit beats estimates on higher memory chip demand

Sept 20 (Reuters) – Chipmaker Micron Technology Inc on Thursday reported fourth-quarter revenue and profit that beat analysts’ estimates, driven by demand for its memory chips from data centers and smartphones.

Shares of the Boise, Idaho-based company rose 2 percent to $47 in extended trading.

Micron has been benefiting from a global memory chip industry boom since late 2016, with strong demand for its products from smartphones and companies shifting to the cloud.

However, concerns that the industry super-cycle may be coming to an end due to oversupply have kept investors on edge who are closely watching NAND and DRAM chip price trends.

Bloomberg on Thursday reported that Samsung Electronics Co Ltd, the world’s biggest supplier of memory chips and Micron’s chief rival, may cut back on memory chip production to keep supplies tight and prices high. Samsung did not respond to Reuters requests for comment on the report.

Net income attributable to Micron rose to $4.33 billion, or $3.56 per share, in the fourth quarter ended Aug. 30 from $2.37 billion, or $1.99 per share, a year earlier.

Net sales rose 38 percent to $8.44 billion.

Excluding items, Micron earned $3.53 per share.

Analysts, on average, had expected Micron to report a profit of $3.34 per share on sales of $8.25 billion, according to Thomson Reuters I/B/E/S. (Reporting by Sonam Rai in Bengaluru; Editing by Maju Samuel)