Micron may be a winner in the wake of Nvidia CEO Jensen Huang's CES keynote

Dow Jones01-07

MW Micron may be a winner in the wake of Nvidia CEO Jensen Huang's CES keynote

By Emily Bary

Huang's hotly anticipated speech brought mention that Micron is providing memory for new Blackwell gaming chips

Could Micron Technology Inc.'s stock be the big winner from Nvidia Corp. Chief Executive Jensen Huang's keynote presentation at CES?

In discussing the company's new GeForce RTX 50 Blackwell family of gaming chips, Huang mentioned that Micron $(MU)$ was providing memory for the graphics processing units.

There was a lot of anticipation heading into Huang's Monday night keynote address, not just for what the company had been up to, but also for Nvidia's $(NVDA)$ potential to deliver a further boost to the semiconductor sector. Suspense ahead of the big event drove chip stocks higher in Monday's regular session, with Micron leading the way as it rose 10.5%.

Micron stock rose another 5% in early premarket trade on Tuesday.

Read: Nvidia's stock rallies as AI chip trade reloads for fresh run higher

Name drops from Nvidia executives have delivered stock boosts in the past, such as when Huang called out Dell Technologies Inc. $(DELL)$ as a key partner during last year's GTC event and even when management mentioned Super Micro Computer Inc. $(SMCI)$ as one of many partners during the last earnings call, helping to soothe fears about the server maker's business relationships while under an accounting cloud.

Micron already has a relationship with Nvidia, and investors have been excited in recent quarters about high-bandwidth memory, which plays a growing role in artificial-intelligence hardware.

Meanwhile, for Nvidia investors, Huang noted Monday that Blackwell is in full production, and "every single cloud service provider now has systems up and running." Blackwell is Nvidia's latest chip family, and Huang announced that there are three new Blackwell systems in production now beyond the Grace Blackwell NVLink72.

The keynote brought other announcements as well, including those fitting for a consumer technology conference. For one, Huang discussed Project Digits, a personal AI supercomputer that begins at $3,000 and runs Nvidia's whole stack. The device makes use of Nvidia's GB10 chip from the Blackwell family. Nvidia said in a press release that this chip lets Project Digits "deliver powerful performance using only a standard electrical outlet." It will be available in May.

Huang also discussed the role of AI agents, which "is probably the next robotics industry, and likely to be a multitrillion-dollar opportunity." Nvidia offers models and frameworks that let businesses build AI agents that can carry out tasks. In one example, AI agents can turn PDFs into podcasts so that students and others can digest information in an engaging and distilled format.

-Emily Bary

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January 07, 2025 04:14 ET (09:14 GMT)

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