Micron Stock Surges on Nvidia Partnership for AI-Powered GPUs

Why Micron Stock Was Moving Higher This Week | The Motley Fool

Shares of Micron (MU -2.45%) were among the winners this week after the memory-chip specialist benefited from general excitement about the chip sector and artificial intelligence (AI) with the start of CES earlier this week. The company also got a specific mention from AI leader Nvidia (NVDA -0.02%), which is using some Micron components in its new products. According to data from S&P Global Market Intelligence, the stock was up 10.6% for the week through Wednesday's close. The market is closed today in remembrance of President Jimmy Carter. The main piece of news driving Micron stock higher was that Nvidia will be using Micron's high-bandwidth-memory (HBM) in its new GeForce RTX 50 Blackwell GPUs that undergird its new advanced AI platform. The partnership is the latest instance of the two companies working together, as Nvidia is now believed to be Micron's largest customer, making up 13% of its revenue. Micron's presence in the Blackwell platform is also a reminder to investors that the memory-chip company is capitalizing on the AI boom. The stock sold off on weak guidance in its fiscal first-quarter earnings report last month, but its latest numbers show AI demand is surging. Data center revenue grew 40% sequentially and 400% year over year, and overall revenue was up 84% to $8.71 billion. Nvidia's endorsement also seemed to help investors shrug off the company's weak second-quarter guidance, showing that it still has a lot of growth ahead in AI. Micron stock is also intriguing at this point because of its valuation. Even after this week's gains, the stock trades at a forward P/E of 14, making it a bargain compared to other chip stocks. The memory subsector is highly cyclical, but it appears to be in a boom right now. Micron could easily move higher from here.

Why Micron Technology Stock Is Soaring Today | The Motley Fool

Micron Technology (MU 12.13%) stock is surging in Monday's trading. The storage solutions company's share price was up 11.7% as of 1 p.m. EST amid the backdrop of a 1% gain for the S&P 500 index and a 1.5% rally for the Nasdaq Composite index. Micron stock is gaining ground today thanks to Nvidia-related news. Investors got a new indicator that demand for the artificial intelligence (AI) leader's hardware remains very strong, and there's also excitement that the AI pioneer's CEO could discuss new hardware featuring Micron's technologies during his presentation this evening. Foxconn Technology published its fourth-quarter results before the market opened this morning and reported record revenue. The China-based tech manufacturing company said that it was seeing strong sales for AI servers. Nvidia is one of Foxconn's largest customers. Meanwhile, Micron's technology is featured in Nvidia's Blackwell B200 and GB200 platforms. In addition to the promising sales indicator, investors are also excited about Nvidia CEO Jensen Huang's keynote speech at the CES conference tonight. Huang is expected to share some new details about his company's upcoming GB300 -- a new processor that's expected to deliver a substantial performance leap over its already superpowered GB200 line. With Micron's tech already included in the GB200, it's not a stretch to think that the memory solutions company will also score design wins in the GB300. Micron stock has been volatile lately. The company published its fiscal 2025 Q1 results on Dec. 18 and the company managed sales and earnings for the period that came in ahead of expectations, but management's forward guidance greatly disappointed the market. For the second quarter, Micron guided for revenue of roughly $7.9 billion and earnings per share of $1.43. Meanwhile, the average analyst estimate had called for sales of $8.98 billion and earnings per share of $1.91. The company's management attributed the soft outlook to slow growth in areas of the consumer market and inventory adjustments. Even with today's surge, Micron stock trades down roughly 35% from the high that it hit last year. The memory chip market tends to be highly cyclical, and investors are split on the performance outlook for the business. On the other hand, the stock looks like it could be a big winner for long-term investors. Micron sees the total addressable market in the HBM category expanding from $16 billion in 2024 to more than $100 billion by 2030, and it's well-positioned to be a leader in the space.

Why Micron Stock Is Jumping Today

Micron is climbing today after Nvidia (NVDA -4.64%) CEO Jensen Huang mentioned the company as a components supplier during his keynote speech at the kickoff of CES last night in Las Vegas. Huang said that Micron's chips would be included as part of his company's upcoming GeForce RTX 50 line of chips. Micron stock surges on Nvidia's CES mentions Last night, Nvidia CEO Jensen Huang gave a keynote address to start this year's CES trade expo. As the world's most influential artificial intelligence (AI) company, investors are paying close attention to Nvidia's strategic moves and business relationships. Micron's chips are already being included as part of the B200 and GB200 processors in Nvidia's Blackwell line, and it looks like integration of its memory solutions is poised to expand with subsequent releases. While the earliest releases in the Blackwell family have been concentrated on meeting AI processing needs in data centers, Nvidia is now broadening the family with new chips for the gaming market. The GeForce RTX 50 will make use of Micron's high-bandwidth memory (HBM) solutions and is a consumer-level chip. What's next for Micron? Micron investors may have been hoping that Nvidia would share more news about its upcoming GB300 processor for the AI data center market, but being spotlighted as a components partner was still a bullish development for the memory-tech company. If there's one partner you want in the AI hardware space right now, it would be hard to pick a better player than Nvidia. Signs that the relationship between the two companies continues to be strong could help allay recent concerns about the memory specialist's growth outlook. With its last quarterly report, Micron delivered forward guidance that shocked the market and prompted big sell-offs for its stock. While the average Wall Street target had called for revenue of $8.98 billion and earnings per share of $1.91 in the current quarter, Micron guided for sales of just $7.9 billion and per-share earnings of $1.43. The company's management cited weakness in sections of the consumer market and inventory adjustments as reasons for the comparatively soft sales and earnings guidance. But Micron's recent design wins with Nvidia highlight its long-term opportunity in the AI memory solutions space. Along those lines, the company expects that the annual market for HBM chips will expand to $100 billion by 2030 -- up from $16 billion in 2024. With the stock still down 31% from its high even on the heels of some recent rebound momentum, Micron stock deserves a close look from AI investors.

Micron stock rallies after Nvidia named it key supplier for new GPUs By Investing.com

Investing.com -- Micron (NASDAQ:MU) shares jumped around 4% in premarket trading Tuesday after Nvidia (NASDAQ:NVDA) CEO Jensen Huang revealed that the company is supplying memory chips for Nvidia's new graphics processing units (GPUs) During his presentation on Nvidia's new GeForce RTX 50 Blackwell gaming chips, Huang highlighted Micron as a key provider of memory for the GPUs. Anticipation had been building ahead of Huang's keynote on Monday night, with investors eager to hear updates not only on Nvidia's latest developments but also on the company's potential to drive further momentum in the semiconductor sector. The excitement pushed chip stocks higher during Monday's regular trading, with Micron gaining 10.5%. Mentions from Nvidia executives have previously given stock prices a boost. For instance, during last year's GTC event, Huang highlighted Dell Technologies (NYSE:DELL) as a key partner, and in a recent earnings call, Nvidia management referenced Super Micro Computer (NASDAQ:SMCI) as a partner, which helped ease concerns about the server maker's business relationships amid accounting uncertainties. Micron has an existing partnership with Nvidia, and investor interest in recent quarters has grown around high-bandwidth memory (HBM), which is becoming increasingly important in AI hardware. As for Nvidia, Huang reassured investors by confirming that Blackwell is fully in production and that "every single cloud service provider now has systems up and running." Blackwell is Nvidia's newest chip family, and Huang announced that three additional Blackwell systems are already in production, complementing the Grace Blackwell NVLink72. According to the keynote, Nvidia's RTX 50-series chips will feature DLSS 4, an AI-powered technology designed to improve gaming frame rates. The chips will enhance character detail and deliver better graphics and higher resolution overall. While Nvidia's gaming division continues to grow, with a 15% year-over-year revenue increase last quarter, the company's data center sales have surged, doubling for six consecutive quarters and surpassing $30 billion in the latest period. Nvidia highlights that the new chips are optimized for AI models and computer graphics, extending beyond gaming. For example, their processing power will allow game developers to incorporate generative AI into in-game characters.

Micron Pops On Nvidia Partnership Buzz: Could Blackwell Chips Be The Memory Maker's Big Break? - Micron Technology (NASDAQ:MU)

Retail investors turn bullish, but technical signals reveal mixed trends, leaving MU stock's rally momentum uncertain. Micron Technology Inc. MU is making waves at CES 2025, with shares jumping 3.7% in early trading after Nvidia Corp NVDA CEO Jensen Huang gave the company a major shoutout. Nvidia's Blackwell Chips: A Boost For Micron Huang confirmed Micron's high-bandwidth memory (HBM) chips power Nvidia's latest Blackwell architecture, calling them a game-changer for AI and graphics workloads. "We're using Micron's G7 memory at 1.8 terabytes per second -- double the performance of the previous generation," Huang noted while unveiling Nvidia's GeForce RTX 50 series GPU. This endorsement positions Micron at the forefront of next-gen AI hardware, with CEO Sanjay Mehrotra calling HBM demand "transformational" for the Boise-based firm. Adding to the excitement, Nvidia unveiled a $3,000 computer, "Project Digits," featuring Micron's DDR5X HBM. Read Also: Stock Of The Day: Micron At Risk Of Breaking Key Support Retail Sentiment Surges Amid MU Stock Chart's Mixed Signals Despite the rally, the technicals offer a nuanced picture. Chart created using Benzinga Pro Bullish Signals: MU stock is trading above its eight-day, 20-day and 50-day simple moving averages. Bearish Concerns: MU stock remains below its 200-day SMAs, with a moving average convergence/divergence (MACD) indicator of negative 1.79 signaling caution. Micron's relative strength index (RSI) at 59.68 suggests the stock is neither overbought nor oversold, leaving the door open for further movement. The Big Picture Micron's partnership with Nvidia on the Blackwell chips could solidify its role as a key player in the AI and gaming revolution. With memory demand ramping up, Micron might finally have the catalyst to regain its footing after a rocky six months. Investors, however, will need to navigate the mixed technical signals as they decide if this rally has legs. Read Next: Nasdaq Jumps Over 1% As Nvidia, Micron Surge: Investor Fear Eases, But Greed Index Remains In 'Fear' Zone Image: Shutterstock Market News and Data brought to you by Benzinga APIs