Micron Technology Inc (NASDAQ:MU) stock was on the back foot ahead of Friday’s open. The chip maker beat expectations with both its earnings and its outlook, but, it also planned to invest in new fabrication sites.
Revenue for the second quarter gained 58% to US$7.35bn, and it reported US$3.31bn of net income (GAAP) which equated to US$2.67 per share. Operating cash flow amounted to US$4.35bn, up from US$1.77bn in the same period of the previous year.
"Micron executed exceptionally well in the second quarter, delivering record results and strong free cash flow driven by broad-based demand for our memory and storage solutions,” said Sanjay Mehrotra, Micron chief executive.
“Our performance was accentuated by an ongoing shift to high-value solutions as we grew sales to our cloud, mobile and automotive customers and set new records for SSDs and graphics memory."
"Secular technology trends are driving robust demand for memory and storage, and Micron is well-positioned to address these growing opportunities."
On Wall Street, Micron shares were down US$1.60 or 2.58% trading at US$57.39.