Bite Faang
03-23

Why i am thinking $Micron Technology(MU)$  is good buy when it dip. 

Key Findings on Supplier Relationship to $NVIDIA(NVDA)$  

HBM3E Memory Supply:

Micron is mass-producing 12-layer HBM3E memory for NVIDIA's next-gen GPUs (Blackwell architecture), which are critical for AI/data center workloads.

Micron's HBM3E offers 36GB capacity and is integrated into NVIDIA's HGX B300/GB300 platforms, enhancing AI performance.

Collaboration on Standards:

Both companies are co-developing SOCAMM (System-on-Chip with Advanced Memory Modules) , a modular LPDDR5X solution optimized for NVIDIA’s Grace Blackwell Ultra Superchip.

Market Positioning:

Micron’s HBM3E claims 20% lower power consumption and 50% higher capacity vs. competitors, making it a preferred choice for NVIDIA’s efficiency-focused designs.

NVIDIA’s reliance on Micron highlights efforts to diversify supply chains beyond SK Hynix/Samsung.

Financial & Operational Implications

Micron’s Growth :

HBM3E margins (~70% gross margin) could boost Micron’s profitability as production scales.

Analysts project Q2 2025 DRAM price increases (3-8%) , driven by AI demand.

NVIDIA’s Dependency :

NVIDIA’s $2.87T market cap hinges on cutting-edge components. Micron’s HBM3E ensures NVIDIA maintains leadership in AI hardware.

Any disruption in Micron’s supply chain (e.g., Singapore/Malaysia facilities) could impact NVIDIA’s GPU output.

Risks to Monitor

Competition: Samsung/SK Hynix are accelerating HBM4 development, potentially challenging Micron’s market share post-2026.

Execution Risk: Micron’s ability to meet NVIDIA’s volume demands for HBM3E in 2025 is untested.

Conclusion

NVIDIA requires Micron’s advanced HBM3E memory for its AI GPUs, underpinning a symbiotic relationship. For investors, Micron’s success in ramping HBM3E production is critical to NVIDIA’s AI roadmap.

Micron's Partnership with Nvidia in Blackwell Gaming Chips
Nvidia CEO Jensen Huang mentioned in his CES keynote that Micron is providing memory for the new Blackwell gaming chips. This announcement has generated anticipation and excitement among investors, leading to a rise in Micron's stock price. Micron already has a relationship with Nvidia, and their collaboration in the gaming industry is expected to further boost the semiconductor sector. The growing role of high-bandwidth memory in artificial intelligence also adds to the positive outlook for Micron.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Merle Ted
    03-24
    Merle Ted
    Nvidia stock is beginning to turn into a value stock from its growth status if it can hold its moat AI roadmap.
  • Enid Bertha
    03-24
    Enid Bertha
    The sell off is completely over done. Micron should easily be 150
  • JimmyHua
    03-24
    JimmyHua
    Great insights! I'm excited to see the earnings! 
  • wobee
    03-24
    wobee
    Buy Micron now
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