Chip Maker Micron Gives Upbeat Revenue Forecast

Paula Pingel from Bloomberg Intelligence discusses Micron's strong financial performance, highlighting their revenue and margin beats, and above-expectation guidance. Despite supply chain concerns due to the Ukraine war, Micron's margins exceeded expectations, indicating strong control. The company did not raise dividends but engaged in share repurchases. Micron is focusing on capital allocation towards expanding supplies and maintaining a diversified supply chain, with manufacturing concentrated in Southeast Asia. The discussion also touches on the challenges of expanding fab capacity in the memory chip market, which is tightly controlled by a few players.

What factors contributed to Micron's strong financial performance in the recent report?

• Higher dividend payouts

• Reduction in supply chain issues

• Increased demand in data centers and auto markets

• Decrease in operational costs

Why might the market be concerned about Micron's decision not to raise dividends?

• It indicates a lack of confidence in future earnings

• It suggests a focus on share repurchases

• It reflects a decrease in revenue

• It shows an increase in operational costs

What is a key debate regarding Micron's expansion plans?

• Whether to reduce share repurchases

• Whether to increase dividend payouts

• Whether to focus on the European market

• Whether to build more facilities in the United States

Where are Micron's manufacturing facilities primarily located?

• South America

• Africa

• Europe

• Southeast Asia

What challenge does Micron face in expanding its memory chip capacity?

• Limited access to raw materials

• Risk of flooding the market with supply

• Lack of skilled labor

• High transportation costs