Micron Technology reported a much higher-than-expected profit in the first quarter, helped by strong sales at its recently acquired Elpida Memory business and a recovery in memory chip prices.
Shares of Micron rose 6 percent in extended trading.
The period ended Nov. 28 was the first full quarter to benefit from sales at Elpida, the last of Japan's dynamic random access memory (DRAM) chipmakers. Micron acquired the company in July.
U.S. memory chip makers such as Micron and SanDisk Corp have been gaining since last year as prices of memory chip prices rebounded from lows hit in 2012.
Pacific Crest Securities analyst Monika Garg said DRAM prices were boosted further by a September fire at a China plant of rival SK Hynix Inc that created a temporary supply shortage.
Garg estimates that PC DRAM chip pricing have increased about 25 percent since the fire. The chips, mostly used in PCs, accounted for 48 percent of Micron's revenue in 2013.