Why Did Micron Stock Bounce Back Today?
Key Points
Chip stock sold off last week, but Nvidia's CEO thinks the AI revolution is just getting started.
Nvidia is tying up with Sandisk rival SK Hynix to improve memory chips performance and production.
- 10 stocks we like better than Micron Technology ›
Micron (NASDAQ: MU) stock got caught in an epic sell-off last week as semiconductor chip stocks lost $1 trillion in market capitalization. Micron crashed 13.5% Friday -- but today it's bouncing back.
Shares of the computer memory specialist gained 6.9% through 10:20 a.m. ET Monday, and investors may have Nvidia (NASDAQ: NVDA) CEO Jensen Huang to thank for this. As StreetInsider.com reports, Huang says we are still just at "the outset of the AI revolution," which has more room to run.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Micron.
Nvidia phones a friend
Matching Nvidia's actions to Huang's words, Nvidia announced today it will form a "multi-year technology partnership" with South Korean memory chip giant SK Hynix. Aiming to build a global system of "AI factories," the two companies will collaborate on advanced memory (and advanced fabrication with the capital investments needed to make it a reality).
Furthermore, Nvidia plans to use artificial intelligence to design new AI chips -- which can then make its AI smarter, enabling it to design even better AI chips in a virtuous circle. SK Hynix will align its new memory chips to work better with Nvidia's AI chips -- Vera Rubin AI supercomputers, Vera CPUs, RTX Spark-powered PCs and even Jetson Thor robotic computing platforms.
What does this mean for Micron?
If you ask me, this sounds like great news for Nvidia, which should be able to secure access to in-demand memory chips from SK Hynix -- and get memory that works better with its own AI chips to boot! This should cut costs and boost efficiency for Nvidia.
What's weird here is that investors are bidding up Micron, which one would think might lose market share to SK Hynix if Nvidia starts to favor SK memory over Micron. To me, this looks more like a reason to sell Micron stock than to buy.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 8, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Nvidia. The Motley Fool has a disclosure policy.
Recommended Articles
