Micron CEO: ‘FY 22 will be a record revenue year for Micron’

Micron Technology Inc (NASDAQ: MU) has taken a 30% hit to its stock price this year but CEO Sanjay Mehrotra says the long-term fundamentals of the company remain strong.

CEO’s remarks on CNBC

Mehrotra attributes the lower share price to macroeconomic headwinds, including lockdown in China, and the ongoing war in Ukraine. In an interview with CNBC’s Sara Eisen, he said:

Long-term fundamentals are really strong. There’s increasing demand for memory and storage with AI, 5G, and autonomous. But near-term, macroeconomic uncertainties driven weakness in smartphone and consumer PC is well-known in the industry.

Memory and storage was a $160 billion industry in 2021 and is expected to roughly double to $332 billion by the end of the decade. Micron trades at a PE multiple of 8.36 at present.

Micron is executing very well

According to CEO Mehrotra, several parts of the business are keeping resilient in the face of the current challenging operating environment and are expected to help drive strong results this year.

Enterprise and commercial PC is relatively healthy. Cloud demand is healthy. Automotive and industrial is strong. FY 22 will be a record revenue year for Micron. We’re executing very well and are long-term very well positioned for a new era of leadership.

He also said the Boise-headquartered company has improved its profitability profile and is well ahead of rivals in both DRAM and NAND chips. The broader iShares Semiconductor ETF is also down 30% in 2022.

The post Micron CEO: ‘FY 22 will be a record revenue year for Micron’ appeared first on Invezz.

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