Micron (MU +10.49%) stock got caught in an epic sell-off last week as semiconductor chip stocks lost $1 trillion in market capitalization. Micron crashed 13.5% Friday -- but today it's bouncing back.
Shares of the computer memory specialist gained 6.9% through 10:20 a.m. ET Monday, and investors may have Nvidia (NVDA +1.33%) CEO Jensen Huang to thank for this. As StreetInsider.com reports, Huang says we are still just at "the outset of the AI revolution," which has more room to run.
Image source: Micron.
Nvidia phones a friend
Matching Nvidia's actions to Huang's words, Nvidia announced today it will form a "multi-year technology partnership" with South Korean memory chip giant SK Hynix. Aiming to build a global system of "AI factories," the two companies will collaborate on advanced memory (and advanced fabrication with the capital investments needed to make it a reality).
Furthermore, Nvidia plans to use artificial intelligence to design new AI chips -- which can then make its AI smarter, enabling it to design even better AI chips in a virtuous circle. SK Hynix will align its new memory chips to work better with Nvidia's AI chips -- Vera Rubin AI supercomputers, Vera CPUs, RTX Spark-powered PCs and even Jetson Thor robotic computing platforms.
NASDAQ: MU
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What does this mean for Micron?
If you ask me, this sounds like great news for Nvidia, which should be able to secure access to in-demand memory chips from SK Hynix -- and get memory that works better with its own AI chips to boot! This should cut costs and boost efficiency for Nvidia.
What's weird here is that investors are bidding up Micron, which one would think might lose market share to SK Hynix if Nvidia starts to favor SK memory over Micron. To me, this looks more like a reason to sell Micron stock than to buy.
