Micron Technology Inc. once again answered all the stock-related uncertainties on Wednesday. The company executives convincingly asserted that the current strength in memory markets is not just a recurring upturn.
Micron reported a big profit and sales gains on Wednesday. It was followed by a forecast, which showed assurance that the memory chips demand will persist with the towering prices of those components.
After the chief financial officer of Micron offered the fourth-quarter forecast, there was reversion in the shares from a slight slope to a profit of nearly 3% in trading done later on. This would add on to a 43.5% growth this year. If compared, the S&P 500 index is up with 3.3% in 2018.
The estimation was enormous as it hit the biggest darkness over the surging stock of Micron. There was a constant fear that there will be a decrease in an ongoing strong demand for memory chips.
Sanjay Mehrotra, Chief Executive, Micron, pretty much controlled those critical scenarios Wednesday. He tried to convince the investors by showing strong memory-chip sales as a steady rather than a cyclic event.
Mehrotra asserted in a telephonic interview with MarketWatch that the company is expecting strong demand drivers for Dynamic Random Access Memory (DRAM) in the data center, mobile, and graphics as well.
On a related note, recently, representatives from China’s anti-monopoly bureau of Commerce Ministry conducted a formal meeting with employees of Micron Technology Inc. TrendForce, a semiconductor research house, explained in a research note referring to industry individuals on May 24, 2018. TrendForce proclaimed that the officials were afraid about the high prices of DRAM.
This increase was because of the earlier rises that were pressurizing the contract companies who manufacture PCs. Micron also confirmed the same. It stated that the Chinese regulatory authorities had visited its offices on May 31, 2018.