Analyst Note| Abhinav Davuluri, CFA |
Micron reported strong fiscal fourth-quarter results, with revenue at the high end of guidance. CEO Sanjay Mehrotra was optimistic that the memory industry would once again exhibit solid growth in calendar 2022, thanks to increasing data center server deployments, 5G mobile shipments, and ongoing strength in automotive and industrial markets. That said, management’s revenue guidance for its fiscal first quarter was below our expectations, which Mehrotra attributed to stronger-than-expected levels in the fiscal fourth quarter and softer memory demand from the PC market that is grappling with shortages of non-memory components needed to complete PC builds. We expect the industry shortages to alleviate sometime in the upcoming quarters, but memory demand should remain robust into 2022 as chip customers are likely to raise their normalized inventory levels.