By Dhirendra Tripathi

Investing.com – Micron Technology stock (NASDAQ:) surged 6.5% in Tuesday’s premarket trading as a robust start to the chipmaker’s financial year led it to promise a record year of sales with “solid profitability”.

The quarter ending December 2, saw a jump of a third in revenue to $7.7billion. This was due to strong demand from clients, including mobile data centers and graphics clients. The adjusted profit per share rose 177% to $2.16 year-on-year, beating all estimates.

In particular, a growth of more than 70% in data center revenues has outpaced a slowerdown in PC market demand.

Sanjay Mehrotra is the President and Chief Executive Officer. He stated that 5G and Artificial Intelligence are fuelling demand growth and that the company will increase its capital expenditure to $11 billion to $12 million in the next year.

The company expects the current tight supply of components to ease gradually through the year, arguing that its volume-based supply pacts and strategic agreements should help it ride out any broader market disruptions.

Micron anticipates revenue in excess of $7.5 billion for the current quarter, with a gross margin around 46%.