As anticipation builds for Nvidia’s (NVDA) upcoming Blackwell system, KeyBanc analysts are highlighting the potential for significant stock gains not only for Nvidia but also for its key partners, Micron Technology (MU) and Monolithic Power Systems (MPWR).
Micron Poised for a Boost as Nvidia’s Memory Partner
Micron Technology, a crucial provider of memory solutions for Nvidia’s AI chips, stands to benefit substantially from the Blackwell launch. Micron’s high bandwidth memory (HBM) chips are integral to Nvidia’s graphics processing units (GPUs).
KeyBanc analysts noted the “positive implications” for Micron, especially given Samsung’s difficulties in certifying its HBM chips for Nvidia’s GPUs. The analysts remarked that Samsung is “unlikely to have a material share on Blackwell,” which positions Micron to “gain an outsized share” of the memory chips market for AI GPUs.
In light of these prospects, KeyBanc raised its price target for Micron to $165 from $160. Micron shares saw a 0.3% increase, closing at $131.14 on Tuesday, contributing to a nearly 54% rise this year.
Monolithic Power Systems to Reap Rewards from Nvidia Partnership
Monolithic Power Systems, another vital Nvidia partner, provides power management solutions for its GPUs. The analysts expect Monolithic Power Systems to “maintain 80%+ share on NVDA Hopper/Blackwell platforms in power,” noting that Blackwell’s power requirements have increased compared to its predecessor, Hopper.
In response, KeyBanc analysts upped their price target for Monolithic Power Systems to $975 from $850. Despite a slight decline of about 0.7% on Tuesday, with shares closing at $846.20, the stock has gained roughly 34% since the beginning of the year.
KeyBanc’s optimism about Nvidia’s Blackwell system underscores the broader potential impact on its partners, suggesting a ripple effect of growth and opportunity across the semiconductor industry.
