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What happened
Actions of Micron technology (NASDAQ: MU) climbed 4.8% on Thursday, following the chipmaker’s second-quarter tax results.
So what
More and more industries are adopting advanced technologies that require more memory chips, and Micron is the market leader. Its second-quarter revenue, in turn, jumped 30% year-over-year to $ 6.24 billion.
“Our technological leadership in DRAM and NAND places Micron in an excellent position to capitalize on age-old demand driven by AI and 5G, and to deliver new levels of user experience and innovation in the data center. and the smart edge, ”CEO Sanjay Mehrotra said in a press release.
Micron’s sales and profits are booming. Image source: Getty Images.
At the same time, a global semiconductor shortage is strengthening the ability of chipmakers to charge higher prices, helping to increase their profit margins. Combined with its strong business performance, this industry momentum helped Micron’s earnings per share climb 47% to $ 0.53 in the second quarter.
Now what
Investors were also apparently intrigued by a report from The Wall Street Journal who claimed that Micron is considering an acquisition of Kioxia. The deal could value the Japanese chipmaker up to $ 30 billion.
Kioxia manufactures NAND flash memory chips used in mobile devices and computer servers – areas that have experienced accelerated growth during the coronavirus pandemic as more people have switched to working remotely and businesses have migrated their operations to the cloud. The acquisition of Kioxia could strengthen Micron’s competitive position in these growing markets.
However, the Newspaper noted that a deal is not guaranteed to come to fruition and would require approval from the Japanese government.
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