Micron Technology Stock Surges as It Starts Mass Producing Memory Chip for Nvidia AI GPUs

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published February 26, 2024
The Micron Technology logo sits on an office building.

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Key Takeaways

  • Micron Technology shares surged as it began mass producing a memory chip to be used in Nvidia's AI GPUs.
  • Micron said its HBM3E would begin shipping in the second quarter.
  • Micron said that along with improving performance, the chip will use less power than rivals.

Shares of Micron Technology (MU) were up over 5% in intraday trading Monday as the company said it had begun mass production of a high-bandwidth memory chip for use in Nvidia’s (NVDA) artificial intelligence (AI) graphic processing units (GPUs). 

Micron said that its 24-gigabyte 8H High Bandwidth Memory 3E (HBM3E) would be part of Nvidia’s H200 Tensor Core GPUs. The company said the HBM3E would begin shipping in the second quarter.

Micron added that the HBM3E would not only improve performance, it would help cut data center operating costs because it uses 30% less power than competing systems. 

Sumit Sadana, executive vice president and chief business officer at Micron, said that AI workloads “are heavily reliant on memory bandwidth and capacity, and Micron is very well-positioned to support the significant AI growth ahead” with the HBM3E and its planned HBM4.

In December, CEO Sanjay Mehrotra told investors that the company anticipates generating “several hundred millions of dollars of HBM revenue in fiscal 2024.” He noted Micron also expects that growth to continue in 2025.

Micron Technology shares were up 5.2% to $90.50 as of about 2:50 p.m. ET Monday, their highest level since early 2022.

MU

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  1. Micron Technology. "Micron Commences Volume Production of Industry-Leading HBM3E Solution to Accelerate the Growth of AI."

  2. Micron Technology. "Micron Technology, Inc. Fiscal Q1 2024 Earnings Call Prepared Remarks."

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