Micron Surges to 20-Year High After Raising Earnings Guidance

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Micron Technology Inc. jumped to a 20-year high Tuesday after the company said revenue and profit came in better than it had predicted in the current quarter.

The largest U.S. maker of memory chips now expects revenue of as much as $5.75 billion in its fiscal first quarter, which ends Thursday, up from a previous projection for as much as $5.4 billion. Earnings per share will be as much as 65 cents, up from a prior forecast of 32 cents to 46 cents, the company said in a statement.

Shares in the Boise, Idaho-based company rose as much as 7.1% to $68.63, its highest price since Sept. 20, 2000.

Micron’s chips provide storage in mobile phones and are also an important part of computers, where they help process data. That makes its earnings a key indicator of demand for all devices that compute, from smartphones to supercomputers.

The company is the largest remaining U.S. maker of the chips and competes with South Korea’s Samsung Electronics Co. and SK Hynix Inc.

©2020 Bloomberg L.P.

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