Micron Stock Surges After Nvidia CEO's CES Reveal

Micron Technology Inc. (MU) shares surged on Monday, following Nvidia CEO Jensen Huang's keynote presentation at CES 2025, where he announced that Micron is providing memory for the company's new GeForce RTX 50 Blackwell family of gaming chips. The news boosted investor confidence in Micron's long-term growth prospects in the AI and gaming markets.



Micron's stock price jumped 10.5% on Monday, leading the broad chip rally, as investors anticipate robust AI demand to drive sector growth this year. The company's high-bandwidth memory (HBM) chips are used in the latest AI processors from chipmaking giants like Nvidia and Advanced Micro Devices (AMD), positioning Micron well to capitalize on surging AI infrastructure demand.



Analysts are overwhelmingly bullish on Micron's stock, with all but one of the 15 analysts tracked by Visible Alpha having a "buy" or equivalent rating for the chipmaker. The consensus price target is roughly $142, a close to 40% premium over Friday's closing price of $102.50. Wall Street expects Micron to report revenue growth of 84% year-over-year and swing to a profit of $1.84 billion or $1.58 per share in the first quarter of fiscal 2025.

However, investors should remain cautious, as Micron faces potential risks and challenges in capitalizing on the growing demand for AI and gaming technologies. These include supply chain constraints, technological obsolescence, market saturation, regulatory risks, and geopolitical instability. To mitigate these risks, Micron must diversify its product offerings, target new markets, and maintain a strong focus on research and development.

In conclusion, Micron's partnership with Nvidia and the growing demand for AI and gaming technologies present significant growth opportunities for the company. However, investors should remain vigilant and monitor the company's progress closely to ensure it can successfully navigate the challenges and risks associated with these markets.