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Micron Technology, Inc. MU shares rose 2.7% on Tuesday following NVIDIA Corporation’s NVDA announcement that Micron would be a critical supplier for its groundbreaking GeForce RTX 50 Blackwell graphics processing units (GPUs). The news, unveiled during NVIDIA’s CES 2025 keynote, underscores Micron’s leadership in the high-bandwidth memory (HBM) market and growing relevance in the rapidly evolving AI semiconductor ecosystem.
Micron stock has already risen 21% in the early days of 2025, sparking investor interest in whether this momentum can be sustained. For now, holding the stock appears to be a prudent move, given its long-term growth potential and industry positioning.
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NVIDIA’s Partnership Fuels Optimism About Micron
NVIDIA's announcement spotlighted Micron as the memory supplier for its new GeForce RTX 50 Blackwell GPUs, which promise groundbreaking AI integration for gaming and data processing. Micron’s HBM solutions will power these chips, offering 1.8 terabytes per second of bandwidth — double the performance of NVIDIA's previous-generation GPUs.
This collaboration isn't new. Micron and NVIDIA have a longstanding partnership in AI and gaming hardware. NVIDIA's decision to feature Micron in its latest consumer and gaming-focused products underscores Micron's leadership in delivering advanced memory solutions. With the AI revolution driving demand for high-performance computing, Micron’s HBM products are well-positioned to capture significant market share.
Micron’s Robust Long-Term Prospects
Micron’s long-term outlook remains strong despite short-term volatility. The company anticipates the HBM market to grow from $16 billion in 2024 to a staggering $100 billion by 2030. Such projections align with the increasing adoption of AI and advanced computing applications, which heavily rely on Micron’s DRAM and HBM products.
While Micron delivered weaker-than-expected revenue guidance of $7.9 billion for the second quarter of fiscal 2025 — below the Zacks Consensus Estimate of $8.96 billion — its focus on AI-related memory chips offers substantial growth potential. Should the company hit its second-quarter targets, it would still reflect impressive year-over-year revenue growth of 36% and a more than three-fold jump in earnings.
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Micron’s strategic partnerships with NVIDIA, Advanced Micro Devices, Inc. AMD and channel partners like Cadence Design Systems and Synopsys, Inc. SNPS solidify its market position. Advanced Micro Devices and Micron have partnered to provide chipset and logic solutions, including memory and storage. The company works with Cadence Design Systems and Synopsys to ensure successful memory verification IP (Internet Protocol).