Memory chip maker Micron Technology (NASDAQ: MU) saw its shares jump after trading following its earnings releases, which beat expectations, combined with an upbeat financial guidance thanks to increasing demand for its chips, mostly from data centers and electric vehicles (EVs).

                By                    Yaёl Bizouati-Kennedy

See: ‘Chips and Ships’ Issues To Persist Into 2022: Which EV Companies and Automakers Will Come Out on Top?Explore: 7 Build Back Better Line Items That Could Still Benefit Americans If Brought to Congress Individually

Shares climbed almost 7% in after-hours trading following its better-than-expected earnings call, Seeking Alpha reported. As of midday Dec. 21, the stock was up nearly 11%.

For the first quarter of fiscal 2022, which ended Dec. 2, Micron’s revenue was $7.69 billion, compared to earning $5.77 billion in revenue in the same period a year ago, according to the release.

Sanjay Mehrotra, President and CEO, said in a statement on Dec. 20 that the company’s guidance for With FQ2 is an expected revenue of $7.5 billion, and earnings per share are expected to be $1.95: “Our FQ1 results and FQ2 outlook keep us on track to deliver record revenue and solid profitability and free cash flow in FY22.”

These figures compare with analysts’ average estimate of $7.32 billion, and projected EPS of $1.86, according to Bloomberg.

In an earnings call, Mehrotra said he expected automotive and industrial to be the fastest-growing memory and storage markets over the next decade, “and we are exceptionally well positioned as a market share leader with over 10% of our revenue coming from these end markets,” according to a transcript of the call. He added that new EVs “are becoming like a data center on wheels.”

“The auto and industrial certainly will be high-growth drivers for us across the cycle. I spoke to all the demand drivers in the automotive market. Micron is clearly an automotive leader in this space,” Mehrotra said on the call. “And this year, we would expect to continue to grow based on all our experience in this market, our share leadership, the high quality we provide and increasing demand for memory and storage content in these markets.”

Find: Here’s How Much You’d Save on Gas With a Tesla and Other Electric CarsLearn: Musk Says US Government Should Stay Out of Electric Vehicle Space

  • 9 Bills You Should Never Put on Autopay
  • How Much You Need To Be ‘Rich’ in 50 Major US Cities
  • Earn Up To $1,500 in Bonuses With This Checking Account
  • How To Refinance a Mortgage