Micron sees revenue above estimates despite coronavirus outbreak

Chipmaker Micron Technology forecast current-quarter revenue above analysts’ estimates on Wednesday and said the shift to work-from-home globally due to the coronavirus outbreak is fueling demand for notebooks and data center services.
Micron TechnologyNotebooks that support work-from-home and virtual learning are in demand, Micron chief executive officer Sanjay Mehrotra said on a post-earnings call with analysts.

The jump in remote work is also powering a surge in demand for data center services.

Sanjay Mehrotra said data center business in China was boosted by increased gaming, e-commerce and remote-work activities as the country locked down many cities and regions to combat the outbreak.

Micron Technology is moving supply from smartphone to service the strength in data center markets, Sanjay Mehrotra said, adding the demand could lead to supply shortages.

Last week, Samsung Electronics said coronavirus would hurt sales of smartphones and consumer electronics this year, while demand from data centers would fuel a recovery in memory chip markets.

Micron said two of its factories in Malaysia were briefly shut down and is now running production on a limited basis, in compliance with the country’s orders.

Micron Technology did not provide any updates about production at its U.S. plants, as states impose shut downs to counter the rapidly spreading virus.

Meanwhile, a group representing major semiconductor companies including Intel and Micron said on Wednesday it was working with federal officials to make clear to state and local officials overseeing lockdowns that chip companies are essential businesses that should continue operations.

Micron said two of its employees had tested positive for the coronavirus, and are receiving medical attention, without specifying the location details.

The Idaho-based company forecast third-quarter revenue in the range of $4.6 billion to $5.2 billion, the midpoint of which was above analysts’ estimates of $4.87 billion.

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