Micron (NASDAQ:MU) stock is rising higher on Monday after announcing the production of memory chips for Nvidia (NASDAQ:NVDA).

Micron notes that its High Bandwidth Memory 3E (HBM3E) solution will be used in Nvidia’s H200 Tensor Core GPUs that are set to start shipping in the second quarter of 2024. The company notes that this will see it providing technology that helps advance the use of artificial intelligence (AI).

One of the benefits that Nvidia gets from working with Micron is the efficiency of its memory chips. The company’s HBM3E solution consumes 30% less energy than competing products.

Sumit Sadana, Executive Vice President and Chief Business Officer at Micron, said the following about the news:

“Micron is delivering a trifecta with this HBM3E milestone: time-to-market leadership, best-in-class industry performance, and a differentiated power efficiency profile […] AI workloads are heavily reliant on memory bandwidth and capacity, and Micron is very well-positioned to support the significant AI growth ahead through our industry-leading HBM3E and HBM4 roadmap, as well as our full portfolio of DRAM and NAND solutions for AI applications.”

How This Affects MU Stock Today

MU stock is seeing a good amount of trading activity following its Nvidia announcement. That has more than 13.9 million shares changing hands as of this writing. This is quickly closing in on the company’s daily average trading volume of about 14.4 million shares.

MU stock is up 5.6% as of Monday morning and up 10.3% since the start of the year.

There are even more stock market stories traders are going to want to read about down below!

We have all of the hottest stock market news worth reading about on Monday! A few examples include new home sales slowing, insider selling of Intuitive Machines (NASDAQ:LUNR) stock and MicroCloud Hologram (NASDAQ:HOLO) regaining listing compliance. All of that news is available at the links below!

More Stock Market News for Monday

• New Home Sales Are Growing Slower Than Expected. Is That Bad News for the Housing Market?
• Insider Guy Shanon Just Sold 360,000 Shares of Intuitive Machines (LUNR) Stock
• HOLO Stock Alert: MicroCloud Hologram Soars 70% on Regaining Compliance

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.