Micron Technology (MU -3.00%) stock is surging in Monday's trading. The storage solutions company's share price was up 11.7% as of 1 p.m. EST amid the backdrop of a 1% gain for the S&P 500 index and a 1.5% rally for the Nasdaq Composite index.
Micron stock is gaining ground today thanks to Nvidia-related news. Investors got a new indicator that demand for the artificial intelligence (AI) leader's hardware remains very strong, and there's also excitement that the AI pioneer's CEO could discuss new hardware featuring Micron's technologies during his presentation this evening.
Nvidia is supercharging Micron stock today
Foxconn Technology published its fourth-quarter results before the market opened this morning and reported record revenue. The China-based tech manufacturing company said that it was seeing strong sales for AI servers. Nvidia is one of Foxconn's largest customers. Meanwhile, Micron's technology is featured in Nvidia's Blackwell B200 and GB200 platforms.
In addition to the promising sales indicator, investors are also excited about Nvidia CEO Jensen Huang's keynote speech at the CES conference tonight. Huang is expected to share some new details about his company's upcoming GB300 -- a new processor that's expected to deliver a substantial performance leap over its already superpowered GB200 line. With Micron's tech already included in the GB200, it's not a stretch to think that the memory solutions company will also score design wins in the GB300.
What's next for Micron?
Micron stock has been volatile lately. The company published its fiscal 2025 Q1 results on Dec. 18 and the company managed sales and earnings for the period that came in ahead of expectations, but management's forward guidance greatly disappointed the market. For the second quarter, Micron guided for revenue of roughly $7.9 billion and earnings per share of $1.43. Meanwhile, the average analyst estimate had called for sales of $8.98 billion and earnings per share of $1.91. The company's management attributed the soft outlook to slow growth in areas of the consumer market and inventory adjustments.
Even with today's surge, Micron stock trades down roughly 35% from the high that it hit last year. The memory chip market tends to be highly cyclical, and investors are split on the performance outlook for the business. On the other hand, the stock looks like it could be a big winner for long-term investors. Micron sees the total addressable market in the HBM category expanding from $16 billion in 2024 to more than $100 billion by 2030, and it's well-positioned to be a leader in the space.
