Micron Technology Expands Production for Nvidia AI GPU Memory Chip

Micron Technology has experienced a notable increase in its stock value following the announcement of the commencement of mass production for a memory chip that will be utilized in Nvidia’s AI GPUs. The company has disclosed that its high-bandwidth memory chip, the HBM3E, is scheduled to commence shipping in the second quarter and will serve as a crucial component in Nvidia’s H200 Tensor Core GPUs.

The news of Micron’s mass production of HBM3E has had a positive impact on its stock, with share prices surging by over 5% during intraday trading on Monday. The company has underscored the advanced attributes of the chip, affirming that it has been engineered not only to improve performance but also to operate with 30% less power consumption compared to other existing systems. This distinction is anticipated to result in substantial cost savings for data center operations.

In a formal statement, Sumit Sadana, Micron’s executive vice president and chief business officer, has accentuated the significance of memory bandwidth and capacity in AI workloads. He has articulated the company’s confidence in its capacity to support the considerable growth of AI with the introduction of HBM3E, as well as the planned development of HBM4.

Additionally, Micron’s CEO, Sanjay Mehrotra, has conveyed the company’s optimistic outlook, forecasting “several hundred millions of dollars of HBM revenue in fiscal 2024” and expecting sustained growth in 2025. This forward-looking perspective has bolstered investor confidence, propelling Micron’s stock to reach its highest level since early 2022, with shares trading at $90.50 as of 2:50 p.m. ET on Monday.

The commencement of mass production of the HBM3E memory chip represents a significant milestone for Micron Technology, solidifying its position as a key player in the advancement of AI technology. The company’s steadfast commitment to innovation and its capability to deliver state-of-the-art solutions have positioned it for substantial growth and success in the forthcoming years.

In conclusion, Micron’s collaboration with Nvidia and the initiation of mass production for the HBM3E memory chip exemplify the company’s dedication to meeting the escalating demands of AI applications. As technological advancements continue to propel the expansion of AI, Micron’s strategic initiatives are poised to play a pivotal role in shaping the future of the industry.