Why Did Micron Stock Bounce Back Today?

Micron (NASDAQ: MU) banal got caught successful an epic sell-off past week arsenic semiconductor spot stocks mislaid $1 trillion successful marketplace capitalization. Micron crashed 13.5% Friday -- but contiguous it's bouncing back.

Shares of the machine representation specializer gained 6.9% done 10:20 a.m. ET Monday, and investors whitethorn person Nvidia (NASDAQ: NVDA) CEO Jensen Huang to convey for this. As StreetInsider.com reports, Huang says we are inactive conscionable astatine "the outset of the AI revolution," which has much country to run.

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Nvidia phones a person

Matching Nvidia's actions to Huang's words, Nvidia announced contiguous it volition signifier a "multi-year exertion partnership" with South Korean representation spot elephantine SK Hynix. Aiming to physique a planetary strategy of "AI factories," the 2 companies volition collaborate connected precocious representation (and precocious fabrication with the superior investments needed to marque it a reality).

Furthermore, Nvidia plans to usage artificial quality to plan caller AI chips -- which tin past marque its AI smarter, enabling it to plan adjacent amended AI chips successful a virtuous circle. SK Hynix volition align its caller representation chips to enactment amended with Nvidia's AI chips -- Vera Rubin AI supercomputers, Vera CPUs, RTX Spark-powered PCs and adjacent Jetson Thor robotic computing platforms.

What does this mean for Micron?

If you inquire me, this sounds similar large quality for Nvidia, which should beryllium capable to unafraid entree to in-demand representation chips from SK Hynix -- and get representation that works amended with its ain AI chips to boot! This should chopped costs and boost ratio for Nvidia.

What's weird present is that investors are bidding up Micron, which 1 would deliberation mightiness suffer marketplace stock to SK Hynix if Nvidia starts to favour SK representation implicit Micron. To me, this looks much similar a crushed to merchantability Micron banal than to buy.

Should you bargain banal successful Micron Technology close now?

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