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Micron Technology (MU) stock rose Monday afternoon after the company announced it would increase production of its HBM3E (High Bandwidth Memory 3E) chips. These chips are used in Nvidia’s (NVDA) semiconductors designed for artificial intelligence functions.
Micron plans to begin shipping these high-performance memory chips in the second quarter of 2024. Yahoo Finance’s Julie Hyman and Josh Lipton break down this trending ticker.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor’s note: This article was written by angel smith
video transcript
Julie Hyman: But today let’s talk about another big tech stock: Micron. Because those stocks are higher today. The chipmaker announced that it has begun mass production of its high-bandwidth memory 3E solution. what is that? It will be part of NVIDIA’s core GPU. Micron says they will start shipping in the second quarter of this year. Although Micron is now a memory chip maker, it has traditionally been viewed as a commodity product.
And I think there were some questions among investors about what role memory chip makers would play. This is a concrete example of what micron is trying to do here. SK Hynix, a major competitor in this field, is also a company that investors are paying attention to. So it’s clear that investors like the news that Micron is coming on board here.
Josh Lipton: It feels like every time I talk about NVIDIA. This is how we do it today. Micron, by the way, said more will be revealed about its product pipeline at his NVIDIA’s GTC developer conference, which is, frankly, the big AI show next month. And remember, in their last earnings call in December, they certainly talked about how GenAI would drive what they called a multi-year growth phase for the company. 2025 will lead to record revenues for the memory industry market.
So they sound confident, and investors are confident too. Looking at the stock price, it’s up nearly 60% in the past 12 months.
Julie Hyman: Yes, certainly.
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