Micron Pops On Nvidia Partnership Buzz: Could Blackwell Chips Be The Memory Maker's Big Break?

Micron Technology (MU) shares surged around 4% in premarket trading Tuesday, following Nvidia (NVDA) CEO Jensen Huang's revelation 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 (DELL) as a key partner, and in a recent earnings call, Nvidia management referenced Super Micro Computer (SMCI) as a partner, which helped to 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.

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.



As Micron's partnership with Nvidia gains traction, investors are eager to see if the memory chipmaker can capitalize on the growing demand for AI-centric memory solutions. With the global AI market expected to reach $190.61 billion by 2025, Micron's high-bandwidth memory (HBM) and GDDR6X solutions are well-positioned to benefit from this trend.

However, the cyclical nature of the semiconductor industry poses challenges for Micron and other memory chipmakers. To maintain its competitive edge and capitalize on the growing demand for AI-centric memory solutions in the long term, Micron should focus on strategic partnerships, continuous innovation, and a diversified product portfolio.



In conclusion, Micron's partnership with Nvidia on the Blackwell chips presents a significant opportunity for the memory chipmaker to solidify its position in the AI and gaming revolution. As the global AI market continues to grow, Micron's high-bandwidth memory solutions are well-positioned to benefit from this trend. However, investors must navigate the cyclical nature of the semiconductor industry and remain vigilant for potential challenges and opportunities in the market.