(Reuters) -Chipmaker Micron Technology Inc on Wednesday forecast second-quarter revenue above Wall Street estimates, as it benefits from strong demand for memory chips used in data centers and cloud computing.
Growing orders from the electric-vehicle industry have helped memory chipmakers offset the impact from slowing demand from makers of PCs and other devices.
Micron is set to profit from greater adoption of cloud technologies, 5G and artificial intelligence, which have substantial computing and memory storage requirements.
“We are taking decisive actions to cut our supply and expenses. We expect improving customer inventories to enable higher revenue in the fiscal second half, and to deliver strong profitability once we get past this downturn,” Micron President and CEO Sanjay Mehrotra said.
The company forecast second-quarter revenue of $3.8 billion, plus or minus $200 million, compared with analysts’ average estimate of $3.75 billion.
Revenue fell about 47% to $4.09 billion for the first quarter ended Nov. 30, from $7.69 billion a year earlier.
Micron reported a net loss of $195 million, or 18 cents per share, compared with a profit of $2.31 billion, or $2.04 per share, a year earlier.
(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli)
