The spotlight shone brightly on Micron Technology Inc. as Nvidia Corp. unveiled its exciting new line of AI-powered gaming chips during the Consumer Electronics Show (CES) 2025 held on January 8 in Las Vegas. Nvidia's Chief Executive Jensen Huang took center stage, announcing Micron as a key memory supplier for the newly launched GeForce RTX 50 Blackwell gaming chips, driving Micron's stock upwards significantly.
With anticipation building prior to the keynote, investors had their eyes set on Nvidia’s potential to bolster semiconductor stocks. Micron led the pack, surging 10.5% during regular trading on the same day, as insiders speculated on announcements related to the graphics processing units (GPUs) used for AI technologies.
Huang's announcement didn’t just mention Micron; it heralded the transformative capabilities of its high-bandwidth memory (HBM) chips, which are integral to powering advanced AI workloads within Nvidia’s architecture. "The graphics processing unit in our new GeForce RTX 50 series Blackwell architecture is just a beast," exclaimed Huang, laying the groundwork for Micron's significant role.
Specifically, Micron’s G7 memory chips deliver 1.8 terabytes per second performance, double what was available with previous generation GPUs. This leap not only enhances gaming experience but also facilitates the intermingling of AI and graphical workloads. Huang captured the moment perfectly, stating, "GeForce allowed AI to reach the masses, and now AI is coming home to GeForce." Clearly, this conjunction points at AI pervading mainstream computing environments.
Prior synergies between the two tech giants indicate a promising growth track for both companies. Historically, when Nvidia executives mention partnerships, like with Dell Technologies or Super Micro Computer during previous events, it elicits positive reactions from the market. The enthusiasm around Micron has been boosted by the rising demand for high-bandwidth memory, especially as it relates to AI hardware realms.
For its part, Micron has developed cutting-edge high-bandwidth memory including their HBM3E iteration, appealing to Nvidia's needs as it ramps up production of the Blackwell family of systems. Their constant evolution ensures Micron remains competitive amid burgeoning demand, especially with the memory market projected to soar to around $30 billion next year and hitting $100 billion by 2030, as emphasized by CEO Sanjay Mehrotra.
Investors appear to be rebounding from past disappointments, especially after Micron's estimates fell short of expectations post-earnings reports last month. Key announcements from Nvidia present ample offset amid potential investor hesitance. Huang outlined extensive applicability of Micron's products beyond gaming — underscoring usage in Nvidia's H200 processors and other Blackwell systems.
This partnership model continues to showcase the strategic alliances necessary for advancing technology, particularly within fields like cloud computing and artificial intelligence. Highlighting this point, Huang emphasized the emergence of AI agents and hinted at the vast opportunities these advancements hold for future industries.
During the CES presentation, Huang also unveiled Project Digits, touted as the world’s first personal AI supercomputer, going for $3,000 and available starting May. This device leverages Nvidia’s GB10 chip from the Blackwell family, which will also utilize Micron’s memory, fortifying their working relationship with this groundbreaking product.
The excitement among Nvidia investors was palpable, with Nvidia's stock projected to surge as well, projected to open at remarkable levels above its prior peaks. Pre-market trading indicated Micron’s shares jumping 5.3%, signaling confident investor sentiment at $104.50 each.
Though optimism ran high, not all anticipated news stirred excitement. Benchmark Research analyst Cody Acree called the attention to Nvidia's Blackwell platform on the absence of updates concerning the next-generation GPU platform, Rubin, which isn’t expected until 2026. Investors were left wanting more on this front.
Nevertheless, Micron’s involvement with the new AI system initiatives and Nvidia’s solid grasp over the advancing computing paradigm sets up both companies for potential long-term benefits. Micron is well-placed as the semiconductor industry evolves, driven by AI imperatives, and tied closely with Nvidia's vision of AI integration.
All eyes will be on how these developments play out as the tech world holds its breath for Nvidia's RTX 50 chips to hit the market by the end of January, with prices ranging between $549 to $1,999 per model.