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 are driving demand for Micron's products according to the discussion?

What challenges does Micron face in diversifying its supply chain?