Micron outlook beats expectations as memory chip prices rise

Micron Technology Inc on Wednesday forecast fiscal third-quarter revenue above Wall Street estimates due to a rise in demand for memory chips thanks to 5G smartphones and artificial intelligence software that is pushing memory chip prices upward.
The Boise, Idaho-based company, which makes NAND memory chips that serve the data storage market as well as DRAM chips that are widely used in laptops and other computing devices, benefited from the coronavirus pandemic as a global shift to remote work boosted chip demand. Shares were up 2.9% after hours.
On top of that, a global chip shortage has spurred buyers such as personal computer makers to begin snapping up supplies, sending memory chip prices upward. Analyst firm Trendforce said prices for DRAM rose between 3% and 8% in the first calendar quarter and predicts prices will rise between 13% and 18% in the second calendar quarter.
Micron said the overall DRAM chip market is in “severe shortage” and will tighten through the year. Micron itself is still working through a production disruption caused by an earthquake and power outage at one of its DRAM plants in Taiwan in December.