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Micron Technology (MU, Financial) shares rallied 6% on Tuesday After Nvidia (NVDA, Financial) named MU a key supplier of memory chips for its cutting-edge GeForce RTX 50 Blackwell GPUs. Nvidia CEO Jensen Huang made the announcement during his company's keynote at CES 2025, where he unveiled what the firm has come up with regarding gaming and AI.
Huang emphasized the critical role of the micron in powering the required high bandwidth memory (HBM) for the RTX 50 series chips, which will enable the boundaries of high-end gaming performance and AI integration for current gaming. The partnership continues Micron's track record as a semiconductor leader in AI-focused solutions that have helped to draw investor interest in recent quarters.
It brought renewed excitement for chip stocks, and Micron added 10.5% to Monday's trading. Past trends have seen Nvidia executives mention key partners at significant events, acting as a tailwind to partners like Dell or Super Micro Computer.
Nvidia also reassured investors about the broader prospects for its company, declaring that Blackwell chips are operational and in production at the largest cloud service providers. Also with the GPUs of the RTX 50-series is DLSS 4, an AI-assisted upgrade that provides superior graphics and smoother gaming.
Nvidia's chips are also well-matched to run AI apps, meaning it is possible to incorporate generative AI in interactive gaming environments beyond gaming. If anything, this dual game and AI focus highlight why Nvidia spends so much, as data centre sales topped $30 billion last quarter alone.
This article first appeared on GuruFocus.