When Micron Technology, the memory chip maker, posted its reports for the fourth quarter of the fiscal year, it surprised a lot of markets and impressed Wall Street with its boost in revenue. This report is a sign of stabilization in the demand for DRAM chips.
The shares of the company increased over 4% after the release of its revenue forecast in extended trade. It’s believed that the surge is because of the strong demand for memory chips from manufacturers of personal computers. In a conference call among analysts and Micron president Mark Adams, he said that the memory chip maker has been locked in DRAM prices with its principal customers.
Aside from the demand for personal computer manufacturers, the increasing demand for NAND chips for smartphones of today as well as laptops and solid-state drives contributed to the boost in revenue of Micron Technology.
Micron’s forecast for this upcoming first quarter of the fiscal year is for its revenue to increase at around $4.45 billion to $4.70 billion. This upcoming quarter already had a little help from the extra week in the quarter because of the adjustment of the fiscal year of the company.
This year, the company’s stock had surged 44% with the help of the positive view on the stable and strong demand and prices for memory chips. Investors were impressed of the company’s acquisition of Elpida Memory, a Japanese DRAM maker which was bought by Micron way back July 2013.
The gross margin of Micron for the quarter is a bit lower at 3.28% compared to the same quarter forecast made by analysts that it would be at $33.7%.