By Dhirendra Tripathi

Investing.com – Micron Technology (NASDAQ:) stock traded 4% higher in premarket Wednesday after the company gave a robust forecast for the ongoing quarter, suggesting demand from data centers remains strong.

The company stated that sales could hit $8.9 million in the third-quarter. The company said that although they could reach $8.9 billion in the worst case, this is still higher than it was a year ago. An adjusted profit per share of $2.47 could be reached and it will still exceed $2.45.

The quarterly gross margin on an adjusted basis is between 47%-49%.

Micron is looking at a record year in fiscal 2022,” he said in an interview. “Our end market demand is strong, our customers’ demand is strong and supply is constrained,” Bloomberg quoted CEO Sanjay Mehrotra as saying.

Micron’s memory chips can now be found in many consumer devices, including TVs and washing machines. This is beyond the traditional smartphone and computer market. That’s helped Micron continue to grow even as the PC market slows.

A large part of Micron’s recent growth has come from supplying chips to data centers. As companies make investments in digital infrastructures, they can cater to their customers more efficiently and effectively.

The second quarter saw a 60% increase in data center revenue. Around 60% of industrial sales growth was due to automation and security systems. The record for auto revenue was broken.

Mehrotra stated that while the Russia-Ukraine conflict does not have any effect on the production volume, but that because the region supplies gases and minerals for chips, it could lead to higher costs.

In the quarter through March 3, Micron’s grew 25% to $7.79 billion. The net income of Micron was $2.26 Billion, which is $2 per share. This was more than three times the amount it earned a year earlier.