Micron Leads the Way as Nvidia's Preferred Supplier for Next-Generation SOCAMM Memory Solution.

Micron Technology has been chosen by Nvidia as the initial supplier for its next-generation memory solution, SOCAMM. Micron has secured Nvidia's approval for mass production, leading the way in supplying this cutting-edge technology. Based on analyst forecasts, the average target price for Micron is $121.82, with an upside of 6.72% from the current price. The GF Value for Micron in one year is estimated to be $149.31, suggesting a 30.81% upside. Micron reported record revenues in data center DRAM and HBM revenue growth of over 50% sequentially.

Micron Technology Inc. (NASDAQ:MU) stock experienced a notable 2% rise on Tuesday following a report that the company has been selected by Nvidia Corp. (NASDAQ:NVDA) as its first supplier for a next-generation memory solution called SOCAMM [1]. According to The Korea Economic Daily, Micron has received Nvidia’s approval for mass production of SOCAMM, a high-performance, low-power memory designed for AI servers in data centers [1].

SOCAMM, or small outline compression attached memory module, is a new type of memory that supports the central processing unit (CPU) and plays a key role in optimizing AI workloads, unlike HBM which is vertically stacked and tightly integrated with the GPU [2]. Micron's edge in low-power DRAM performance has enabled it to outpace its South Korean rivals, Samsung Electronics Co. (F:SAMEq) and SK Hynix Inc. (KS:000660), who have developed SOCAMM chips but have yet to obtain Nvidia’s certification [2].

The development of SOCAMM could significantly reshape competitive dynamics in the global memory industry, particularly in the rapidly expanding AI infrastructure market where Nvidia maintains a dominant position [1]. Analysts point out that Micron’s late adoption of extreme ultraviolet (EUV) lithography has unexpectedly provided it with an advantage in terms of superior heat management capabilities [2].

Micron's strategic win with SOCAMM comes at a time when the company is experiencing a broader resurgence. The company is doubling down on its manufacturing footprint, committing $14 billion in capital expenditure this year, including new HBM fabs in Singapore, Japan, Taiwan, and New York State [2]. This aggressive investment suggests that Micron may already have secured long-term supply contracts from major hyperscalers.

Micron’s enhanced capabilities in low-heat memory are expected to boost its position in the fiercely competitive HBM segment as well. The company is already known to have supplied a leading share of LPDDR5X chips to Samsung for its Galaxy S25 series smartphones and to Apple for its iPhone 15 lineup [2].

Analysts forecast the average target price for Micron to be $121.82, with an upside of 6.72% from the current price. The GF Value for Micron in one year is estimated to be $149.31, suggesting a 30.81% upside [5]. Micron reported record revenues in data center DRAM and HBM revenue growth of over 50% sequentially.

References:
[1] https://www.investing.com/news/stock-market-news/micron-stock-rises-after-report-of-nvidia-socamm-supply-deal-93CH-4090960
[2] https://www.kedglobal.com/korean-chipmakers/newsView/ked202506100008
[3] https://www.mobileworldlive.com/network-tech/micron-tips-rivals-with-nvidia-memory-approval/
[4] https://www.tweaktown.com/news/105696/nvidia-commissions-dram-giants-to-develop-socem-new-for-next-gen-ai-gpus/index.html
[5] https://seekingalpha.com/article/4793735-micron-why-the-stock-is-rising-and-where-its-going-next