Micron shrugs off Huawei hit, raises Q1 financial guidance

Micron has upped revenue guidance for the first quarter ended December 3 from $5bn-$5.4bn to $5.7bn-$5.75bn.

The US chipmaker has also increased its gross margin and EPS guidance for the quarter. Investors are happy and the stock price rose 5.7 per cent in pre-market trading.

Micron said it switched production from Huawei to other customers more quickly than it has previously anticipated. Huawei, hitherto Micron’s biggest customer, is subject to a US trade ban.

In addition, Micron may have recorded stronger than expected DRAM sales, according to Wells Fargo analyst Aaron Rakers.

It will be interesting to see if this is Micron-specific news or Samsung and SK hynix are also benefiting from an end-of-year boost.