Micron Technology Inc., the largest U.S. maker of memory chips, gave an upbeat forecast for the current quarter, a sign that demand remains strong from rapidly expanding data-center customers.

Sales will be about $8.7 billion in its fiscal third quarter, Micron said Tuesday in a statement. That compares with an average analyst estimate of $8.2 billion, according to data compiled by Bloomberg. Excluding certain items, profit will be about $2.46 a share, topping the $2.24 prediction.

Memory chips are now used in a wide range of devices, making them less subject to fluctuations in demand for personal computers and smartphones. That’s helped Micron continue to grow even as the PC market slows.

Micron’s shares rose as much as 6.5% in extended trading following the report. They had lost 12% this year through Tuesday’s close, part of a broader tech slump. The Philadelphia Stock Exchange Semiconductor Index has lost 8.1% this year.

In the three months ended March 3, Micron’s revenue grew 25% to $7.79 billion. Net income was $2.26 billion, or $2 a share, up from $603 million, or 53 cents, a year earlier.

Micron competes with South Korea’s Samsung Electronics Co. and SK Hynix Inc., as well as Japan’s Kioxia Holdings Corp.

DRAM chips hold data temporarily, helping processors crunch data. Nand flash memory, meanwhile, acts as permanent storage in phones and computers. Recent production problems at Kioxia plants caused some of its products to be unusable, helping boost prices of Nand chips.

Samsung dominates production of both major types of chips.

By: DocMemory
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