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Key Takeaways
- Micron Technology and Monolithic Power Systems could share in Nvidia’s gains fueled by the upcoming Blackwell platform launch, KeyBanc analysts said.
- The analysts said Micron is well-positioned to benefit as its high bandwidth chips are used in Nvidia’s graphic processing units (GPUs).
- Monolithic Power Systems provides power management solutions for Nvidia GPUs, since Blackwell has more demanding power requirements than its predecessor.
- KeyBanc analysts lifted their price targets for both of the Nvidia partners.
As bullish calls grow for Nvidia ( NVDA ) stock on strong demand for its upcoming Blackwell system , KeyBanc analysts highlighted how Nvidia’s gains could also boost shares of its partners such as Micron Technology ( MU ) and Monolithic Power Systems ( MPWR ).
KeyBanc analysts lifted their price targets for both of the Nvidia partners in a note Tuesday, citing anticipated benefits from Blackwell’s launch.
Micron Poised To Gain as Nvidia Memory Partner
Micron provides Nvidia with memory solutions for its artificial intelligence (AI) chips, with the company’s high bandwidth memory (HBM) chips used in Nvidia’s graphic processing units (GPUs) .
KeyBanc analysts highlighted the “positive implications” for Micron as Samsung has struggled to get its HBM chips certified for use in Nvidia GPUs.
They said Samsung is “unlikely to have material share on Blackwell,” which KeyBanc said “will support MU gaining outsized share” on memory chips used in AI GPUs.
KeyBanc lifted its price target for Micron to $165 from $160. Micron shares closed 0.3% higher at $131.14 Tuesday, contributing to the stock’s nearly 54% gain this year.
Monolithic Power Systems To Benefit From Nvidia Ties
Monolithic Power Systems is a Nvidia partner providing power management solutions for its GPUs.
The analysts said they “expect MPWR to maintain 80%+ share on NVDA Hopper/Blackwell platforms in power,” highlighting that Blackwell has increased power requirements compared to its predecessor, Hopper.
KeyBanc analysts raised their Monolithic Power Systems price target to $975 from $850. Monolithic Power Systems shares lost about 0.7% Tuesday to finish at $846.20, though they’ve gained about 34% since the start of the year.