Computer chipmaker Micron Technology Inc. posted strong fiscal first-quarter results today, showing revenue and profit that came in well ahead of expectations.

The company reported a profit before certain costs such as stock compensation of 78 cents per share on revenue of $5.77 billion, easily beating Wall Street’s forecast of earnings of 68 cents per share on revenue of $5.66 billion.

More importantly, the results beat Micron’s own updated forecast of 69 to 73 cents per share in earnings and $5.7 billion to $5.75 billion in revenue. The company’s stock rose more than 1% in after-hours trading.

Micron Chief Executive Sanjay Mehrotra (pictured) said the company’s better-than-expected quarter was driven by focused execution and strong end-market demand, and that the results were “outstanding.”

“We are excited about the strengthening DRAM industry fundamentals,” he added. “For the first time in our history, Micron is simultaneously leading on DRAM and NAND technologies, and we are in an excellent position to benefit from accelerating digital transformation of the global economy fueled by AI, 5G, cloud and the intelligent edge.”

Micron is a major supplier of dynamic random-access memory and NAND flash memory chips that are used in personal computers, servers and mobile devices. It had some encouraging news for investors, saying in an investor presentation that it sees strong demand for DRAM this year that will grow in the “high-teens percentage range.” It added that the available supply of DRAM is likely “to be below demand,” which will likely translate to higher prices for its products.

Analyst Patrick Moorhead of Moor Insights & Strategy told SiliconANGLE the DRAM market had turned around thanks to strength in the personal computer, Chromebook and hyperscale data center markets. “Micron is taking advantage of those market dynamics,” he said.

The strength of the market has enabled Micron to grow its DRAM revenue to such an extent that it has now caught up with its NAND revenues, Constellation Research Inc.’s Holger Mueller pointed out. NAND had for a long time accounted for the majority of Micron’s revenue.

“Micron beat its own expectations with good management, with key costs staying flat while revenue expansion took place,” Mueller added.

It’s not all good news though, because Micron said the NAND flash market is in the opposite situation, facing supply above demand. However, the company said it’s optimistic that the market can “stabilize over the course of 2021 if suppliers moderate their product growth.”

For the second quarter, Micron said, it’s expecting earnings of 68 to 82 cents per share on revenue of $5.6 billion to $6 billion. Wall Street had earlier forecast second quarter earnings of 67 cents on revenue of $5.55 billion.

Photo: SiliconANGLE