<p>As one of the leaders in the artificial intelligence (AI) revolution, <strong>Nvidia</strong> <span class="ticker-mention inline-flex items-center font-bold">(NVDA <span class="ml-1 text-green-900">+1.26%</span>)</span> is closely watched within the tech industry for insight into what's next. The company's graphics processing units (GPUs) are at the heart of AI processing, and being a component supplier can have significant implications for a company's success or failure in AI.</p>
<p>Nvidia has been a major contributor to the success of <strong>Micron Technology</strong> <span class="ticker-mention inline-flex items-center font-bold">(MU <span class="ml-1 text-green-900">+2.35%</span>)</span>. Unprecedented demand for Nvidia's GPUs has fueled equally impressive demand for Micron's high-bandwidth memory (HBM), DRAM, and NAND processors, as the company is a major chip supplier to Nvidia. However, a persistent shortage of these data center memory chips -- which play a crucial role in AI processing -- may be working against Micron. For its flagship Vera Rubin chip, scheduled for release in the second half of 2026, Nvidia is reportedly using memory chips from Micron's biggest competitors.</p>
<div><img alt="Micron logo superimposed over a picture of the company's headquarters building." width="880" height="587" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NTk5ODgvbWljcm9uLWxvZ28tc3VwZXJpbXBvc2VkLW92ZXItYS1waWN0dXJlLW9mLXRoZS1jb21wYW55cy1oZWFkcXVhcnRlcnMtYnVpbGRpbmcucG5nJnc9Mzg0MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NTk5ODgvbWljcm9uLWxvZ28tc3VwZXJpbXBvc2VkLW92ZXItYS1waWN0dXJlLW9mLXRoZS1jb21wYW55cy1oZWFkcXVhcnRlcnMtYnVpbGRpbmcucG5nJnc9Mzg0MA"/>
<p>Image source: The Motley Fool.</p>
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<h2>Left out in the cold?</h2>
<p>Reports out this morning suggest that <strong>SK Hynix</strong> and <strong>Samsung Electronics</strong> <span class="ticker-mention inline-flex items-center font-bold">(SSNLF <span class="ml-1 text-green-900">+55.02%</span>)</span> will be the <em>sole</em> suppliers of sixth-generation HBM4 for the Vera Rubin processor, according to an article that first appeared in The Korea Economic Daily. The publication cited sources that suggest SK Hynix will supply more than half of Nvidia's total HBM supply this year, while Samsung will be the leading supplier of HBM4 chips for the Vera Rubin.  </p>
<p>SK Hynix and Samsung Electronics are the world's largest suppliers of HBM, with 34% and 33% of the market, respectively, according to Counterpoint Research. Micron controls 26% of the market, coming in third. </p><div><div id="foolcom_sidebar_top_container"></div></div>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Micron Technology Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL01VLnBuZyZ3PTEyOA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL01VLnBuZyZ3PTEyOA"/></div><div><h2>NASDAQ: MU</h2><div>Micron Technology</div></div></div><div><div><div>Today's Change</div><div>(2.35%) $8.72</div><div>Current Price</div><div>$379.02</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$417B</div><div>Day's Range</div><div>$357.69 - $381.50</div><div>52wk Range</div><div>$61.54 - $455.50</div><div>Volume</div><div>928K</div><div>Avg Vol</div><div>34M</div><div>Gross Margin</div><div>45.53%</div><div>Dividend Yield</div><div>0.12%</div></div></div></div></section>
<p>This could have serious implications for Micron's future. Nvidia is the gold standard and market leader in data center GPUs, with an estimated 92% of the market, according to IoT Analytics. Furthermore, the biggest companies in technology -- namely <strong>Alphabet</strong>, <strong>Microsoft</strong>, <strong>Amazon</strong>, and <strong>Meta Platforms</strong> -- have announced plans to devote a combined $700 billion for capital expenditures in calendar 2026, with the vast majority of that spending earmarked for AI-centric data centers and servers. </p><div></div>
<p>However, the news isn't all bad. Citi analyst Atif Malik estimates that the cost of some memory chips will skyrocket 171% this year, fueled by persistent data center demand and the ongoing shortages. As a result, Micron likely won't have difficulty finding a market for its other memory chips, even those that Nvidia doesn't integrate into the Vera Rubin chip. Furthermore, Micron may be tapped later in the production cycle as shipments of Vera Rubin increase, according to Radio Free Mobile independent analyst Richard Windsor. </p><div><div id="in_line_article_pitch_container"></div></div>
<p>There's a bright side for investors. Like many stocks in the space, uncertainty has driven Micron down 13% from its peak, creating a rare opportunity to get it on sale. While Micron might not seem like a bargain at 36 times earnings, it has a much more reasonable forward multiple of 11. That's not a bad price to pay for a company expected to grow its revenue by 109% this year, according to Wall Street.</p><div id="article_pitch_container"></div><div id="promobox_container"></div>

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<p>Nvidia's recent decision to source sixth-generation HBM4 memory chips for its Vera Rubin processor from SK Hynix and Samsung Electronics has raised concerns for Micron Technology. As a key supplier to Nvidia, Micron may face challenges due to this shift, despite controlling 26% of the HBM market. However, analysts suggest that Micron could benefit from rising memory chip prices and increased demand for its other products. With a potential revenue growth of 109% this year, Micron presents a buying opportunity for investors despite recent stock declines.</p>

- Nvidia is a leader in AI, with its GPUs being crucial for processing, impacting both its and Micron Technology's success.  
- A shortage of data center memory chips may hinder Micron, as reports indicate that SK Hynix and Samsung will provide the necessary HBM for Nvidia's Vera Rubin chip instead of Micron.  
- However, high demand is expected to drive up chip prices, potentially benefiting Micron's other products and offering investors opportunities amid current market fluctuations.

Micron Investors Just Got Terrible News From Nvidia