Micron's Booming Memory Chip Sales Validate Nvidia's Growth Prospects, But AI Boom May Not Last
• Micron reported strong financial results last quarter, with revenue up 58% year-over-year. The company expects continued high growth driven by demand for AI and high performance computing.
• Micron's high-bandwidth memory (HBM) chips are sold out through 2024, with most 2025 supply already allocated. This signals ongoing strong demand.
• Nvidia stock has soared over 500% since early 2023 on expectations of booming growth in generative AI and accelerated computing, doubling earnings.
• Micron's HBM chip supply constraints validate Nvidia's growth, showing continued data center demand. But the party likely won't last forever.
• For now, Nvidia has momentum, with supportive trends in AI infrastructure spending. Micron's success signals Nvidia could have a long growth runway ahead.