Micron Technology shares moved firmly higher in early Tuesday trading after the memory-chip maker was named as a prominent supplier to Nvidia's new line of AI-powered gaming chips and personal computers during a key presentation in Las Vegas.
Micron, which has worked in partnership with Nvidia (NVDA) for several years, was named by CEO Jensen Huang during his keynote address to CES 2025 last night as providing memory to the tech giant's new line of AI-powered gaming chips.
Huang unveiled the new RTX 50 series of chips, which use Nvidia's Blackwell-based AI technologies, as part of a host of new products and applications aimed in part at maintaining the group's broader market leadership.
Micron, (MU) Huang said, would specifically provide its high-bandwidth-memory chips, a crucial component in artificial-intelligence technologies, to Nvidia's new GeForce RTX 50 Blackwell family of gaming chips.
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"The [graphics processing unit] in our new GeForce RTX 50 series Blackwell architecture is just a beast," Huang told CES 2025 last night. "[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."
“GeForce allowed AI to reach the masses, and now AI is coming home to GeForce," Huang added.
Micron's HBM demand realized?
The Boise, Idaho, group's high-bandwidth-memory chips, including a new HBM3E iteration, are also being built into Nvidia's H200 processors, as well as its newly developed Blackwell systems.
The chips have established Micron as one of just a few global companies that can compete in this fast-growing market. CEO Sanjay Mehrotra has said the market for them is likely to rise to around $30 billion next year and top $100 billion by 2030.
The new Nvidia use case could offset some of investors' disappointment with Micron's outlook, published last month, which clouded an otherwise solid quarterly earnings report.
Related: Analysts overhaul Micron stock price targets after earnings, outlook
Mehrotra told investors that HBM demand would be "transformational for Micron," but he issued a current-quarter revenue forecast of $7.9 billion, notably shy of Wall Street analysts' estimates.
Nvidia said the higher-end models of its GeForce RTX 50 chips would start shipping by the end of the month, with prices ranging from $549 to $1,999 each.
Nvidia unveils AI-powered PC
Huang also unveiled the group's new AI-powered laptop, a "supercomputer" it calls "Project Digits" that is likely to launch in May and be powered by its GB10 Grace Blackwell Superchip.
Micron will also provide memory for the new PC, which will require an enormous amount of so-called random access memory, or RAM, to run its AI-powered models.
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"It runs the entire Nvidia AI stack — all of Nvidia software runs on this," Huang said. "It's a cloud computing platform that sits on your desk. It's even a workstation, if you like it to be."
Micron shares were marked 5.3% higher in premarket trading to indicate an opening bell price of $104.50 each.
Nvidia shares, meanwhile, are set to open at a fresh all-time high and were last changing hands at $152.13 in premarket trading.
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