Micron's Blowout Earnings Could Be Great News for Nvidia Investors
What does a sold-out memory supplier really tell you about the staying power of the AI chip boom?
Overview
Memory chips rarely steal the spotlight from the processors they support. But Micron Technology (NASDAQ: MU) just posted a quarter big enough to do exactly that -- and the read-through may matter most for investors in Nvidia (NASDAQ: NVDA), whose artificial intelligence (AI) accelerators are built around the very memory Micron is scrambling to supply.
Micron's stock jumped about 16% as of this writing on the results. Nvidia's, oddly, slipped about 1.6% on the same day. But look past the one-day move, and Micron's report says something encouraging about how strong -- and how durable -- demand for AI chips looks heading into Nvidia's next chapter.
Imag source: Getty Images.
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Originally published at www.fool.com.