Micron Pops On Nvidia Partnership Buzz: Could Blackwell Chips Be The Memory Maker's Big Break?

Micron Technology Inc. MU is making waves at CES 2025, with shares jumping 3.7% in early trading after Nvidia Corp NVDA CEO Jensen Huang gave the company a major shoutout.

Nvidia's Blackwell Chips: A Boost For Micron

Huang confirmed Micron's high-bandwidth memory (HBM) chips power Nvidia's latest Blackwell architecture, calling them a game-changer for AI and graphics workloads.

"We're using Micron's G7 memory at 1.8 terabytes per second — double the performance of the previous generation," Huang noted while unveiling Nvidia's GeForce RTX 50 series GPU. This endorsement positions Micron at the forefront of next-gen AI hardware, with CEO Sanjay Mehrotra calling HBM demand "transformational" for the Boise-based firm.

Adding to the excitement, Nvidia unveiled a $3,000 computer, "Project Digits," featuring Micron's DDR5X HBM.

Read Also: Stock Of The Day: Micron At Risk Of Breaking Key Support

Retail Sentiment Surges Amid MU Stock Chart’s Mixed Signals

Despite the rally, the technicals offer a nuanced picture.

Chart created using Benzinga Pro

• Bullish Signals: MU stock is trading above its eight-day, 20-day and 50-day simple moving averages.
• Bearish Concerns: MU stock remains below its 200-day SMAs, with a moving average convergence/divergence (MACD) indicator of negative 1.79 signaling caution.

Micron's relative strength index (RSI) at 59.68 suggests the stock is neither overbought nor oversold, leaving the door open for further movement.

The Big Picture

Micron's partnership with Nvidia on the Blackwell chips could solidify its role as a key player in the AI and gaming revolution.

With memory demand ramping up, Micron might finally have the catalyst to regain its footing after a rocky six months.

Investors, however, will need to navigate the mixed technical signals as they decide if this rally has legs.

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