Micron Technology Inc (NASDAQ:MU) gained over 5% on Monday as news broke that the firm had kicked off mass production of semiconductors for use in NVIDIA Corp (NASDAQ:NVDA, ETR:NVD)’s artificial intelligence chips.
Volume production of the high-bandwidth memory semiconductors, known as HBM3E, has now begun, Micron said on Monday.
These will be used in NVIDIA’s next-generation H200 Tensor Core graphic processing units, due to be shipped in the second quarter of the calendar year.
NVIDIA’s precursor, the H100, has fuelled a spike in revenue at the chipmaker, which has become a household name on the back of the huge surge in artificial intelligence (AI) adoption over the past year.
Micron said its involvement in NVIDIA’s latest AI chips positioned it at the forefront of the industry.
“AI workloads are heavily reliant on memory bandwidth and capacity, and Micron is very well-positioned to support the significant AI growth ahead,” executive vice president Sumit Sadana said in a press release.
According to Micron, its semiconductors are faster, scalable and use around 30% less energy than existing products.
Shares in Micron climbed 5.3% to US$90.59.