Micron forecasts strong revenue as memory chip demand improves

Memory chipmaker Micron Technology forecast quarterly revenue above market estimates on Wednesday as memory demand and pricing begins to recover after one of the most significant downturns in years.

The company’s shares rose nearly 5% in extended trading.

Analysts expect demand for flash storage and dynamic random access memory (DRAM) to continue to improve next year. Memory prices, which slumped this year, have improved in recent weeks, which will help the company deliver higher profitability.