Micron Technology Inc (MU) is trading up in premarket on Monday after announcing to have started mass production of its HBM3E solution.

HBM3E to be used in Nvidia H200

Its high bandwidth memory 3E will be used in H200 – an advanced chip for artificial intelligence that Nvidia Corp (NVDA) is expected to start shipping in the second quarter of 2024.

Micron is confident that its HBM3E consumes about 30% less power than the competing products. Sumit Sadana – the chief business officer of the Nasdaq-listed firm said in a press release today:

 

Micron is well-positioned to support significant AI growth ahead through our industry-leading HBM3E and HBM4 roadmap, and full portfolio of DRAM and NAND solutions for AI applications.

$MU is now up more than 60% versus its 52-week low in March of 2023.

Micron wants to tap on AI chips demand

Micron Technology Inc expects to capitalise on continued demand for AI chips with volume production of its HBM3E solution.  

Investors are cheering the announcement on Monday also because its high bandwidth memory may also help offset a rather sluggish recovery in its other markets.

Note that HBM is one of the highly profitable products of $MU that the management expects will bring in “several hundred million dollars” in revenue in fiscal 2024.

The semiconductor company based out Boise, Idaho is scheduled to report its quarterly financial results on March 20^th. Wall Street currently has a consensus “overweight” rating on Micron stock.

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