Micron and Nvidia Emerge as Winners from Huang’s Announcements 
Burc Oran
January 7, 2025
Micron and Nvidia Emerge as Winners from Huang’s Announcements

Nvidia’s CEO, Jensen Huang, spoke at the CES trade show yesterday, unveiling new chips, AI developments, services, and more. The excitement was reflected in Nvidia’s share prices, which rose immediately. Nvidia and Micron appeared to be the biggest winners from yesterday’s announcements. 

Huang announced that Nvidia is launching a new GeForce GPU series based on the Blackwell architecture, also used in their latest AI accelerators. These new GPUs will rely more on AI to anticipate upcoming frames rather than using traditional calculations. 

Huang also revealed that Toyota is now a customer, signaling Nvidia’s growing presence in the automotive sector. The company is expected to generate increased revenue from its automotive segment. Huang envisions a future with more automated robots and cars, driven by Nvidia’s innovations. 

(NVDA Daily Chart) 

©Bloomberg 

Nvidia’s momentum has clearly slowed since June of last year. Volume has been consistently declining, returns have moderated, and price movements have contracted significantly. However, with new AI services, Blackwell-designed AI accelerators and GPUs, and an expanding automotive business, Nvidia’s growth is likely to continue at a strong pace over the long term. 

In the shorter term, despite the recent increase in volume and two consecutive gap-up openings, the wedge formation remains intact, and volume is still significantly lower than in the first half of 2024. A breakout to the upside from the ascending wedge could potentially trigger a new rally, ultimately pushing the share price above 200. 

For now, it is crucial to monitor the 156–160 zone, with 130 serving as the main support level in the early weeks of 2025. 

(MU Weekly Chart) 

©Bloomberg 

Another major winner of yesterday’s announcement, and perhaps the biggest, is Micron. Nvidia is collaborating with Micron on the memory units for the new Blackwell-designed RTX 5000x series GPUs. This marks an expansion of their already ongoing partnership. Huang also highlighted a possible future with advancements in robotics and automated vehicles, signaling a potentially brighter future for Micron, as these technologies will require substantial memory resources. 

Micron shares have been in an uptrend on a logarithmic scale since 2016, consistently forming higher highs and higher lows. After testing the trendline in the past two weeks, the stock is now preparing to challenge the 115 resistance level once again. A successful breakout could initiate a move toward 170 in the coming weeks. 

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