Micron Technology Inc. (NASDAQ: MU) saw its stock surge nearly 4% in premarket trading on January 7, following Nvidia (NASDAQ: NVDA) CEO Jensen Huang’s highly anticipated keynote at CES 2025.
Huang named Micron as a key supplier of memory chips for Nvidia’s newly unveiled GeForce RTX 50 Blackwell gaming GPUs, igniting investor enthusiasm around Micron’s growing role in the rapidly growing AI and gaming hardware markets.
After experiencing a downtrend starting in mid-December and trading near $87 for much of the month, the Idaho-based semiconductor giant logged a 15% gain over the past five days, pushing its stock to $99.26 at the press time.
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Micron’s critical role in Nvidia’s Blackwell architecture
The RTX 50 series, built on Nvidia’s advanced Blackwell AI architecture, is set to deliver impressive performance.
Huang specifically highlighted that Micron’s high-bandwidth memory (HBM) chips provide an impressive 1.8 terabytes per second of bandwidth—double the performance of the previous generation.
This announcement solidifies Micron’s role as a critical player in Nvidia’s supply chain, with the company also supplying HBM for Nvidia’s H200 processors and upcoming Blackwell systems.
“We’re getting G7 memory from Micron of 1.8 terabytes per second, twice the performance of our last generation, and we now have the ability to intermix AI workloads with computer graphics workloads.” – Jensen Huang
Broader sector momentum
Investor enthusiasm surged during the January 6 trading session, propelling Micron’s shares 10.5% higher to close at $99.26. The rally extended across the broader semiconductor sector, driven by optimism over Nvidia’s latest product announcements and record-breaking revenue from contract electronics giant Foxconn.
These developments signaled accelerating momentum in the artificial intelligence sector, highlighting substantial growth opportunities ahead.
Nvidia CEO Jensen Huang’s keynote further amplified excitement with the unveiling of new AI-powered laptops under “Project Digits.”
Set to launch in May 2025, these devices will be powered by the Grace Blackwell Superchip and demand substantial memory resources—further strengthening Micron’s role in Nvidia’s expanding product lineup.
Nvidia plans to ship its RTX 50-series GPUs by the end of January, with prices ranging from $549 to $1,999, further reinforcing strong demand for Micron’s memory solutions.
What’s next for Micron?
Micron’s fiscal Q1 2025 results, reported on December 18, exceeded expectations, but the company’s forward guidance left investors disappointed.
The semiconductor giant projected Q2 revenue of $7.9 billion, falling short of Wall Street’s estimates, citing slower consumer market growth and inventory adjustments as key challenges.
The cyclical nature of the memory chip market has created a divide among analysts regarding Micron’s near-term prospects.
However, the long-term outlook remains promising. CEO Sanjay Mehrotra described demand for high-bandwidth memory as “transformational” for the company, projecting the total addressable market for HBM to expand from $16 billion in 2024 to over $100 billion by 2030.
“The HBM market will exhibit robust growth over the next few years. In 2028, we expect the HBM total addressable market (TAM) to grow four times from the $16 billion level in 2024 and to exceed $100 billion by 2030.” – Sanjay Mehrotra
Despite trading approximately 42% below its 2024 peak of $141, Micron’s leadership in HBM positions it as a strong candidate for sustained long-term growth.
Analysts remain optimistic about Micron’s expanding role in AI and gaming markets, with Nvidia’s reliance on its memory solutions offering strong validation of its technological edge.
Featured image via Shutterstock
