As Nvidia (NVDA) continues to gain promising prospects on strong demands for the forthcoming Blackwell system, KeyBanc analysts have pointed out how this wave of success could arguably enhance shares of Nvidia's associates like Micron Technology (MU) and Monolithic Power Systems (MPWR). They increased their price targets for these companies due to expected advantages from Blackwell's introduction.
Micron provides Nvidia with memory solutions used in Nvidia's artificial intelligence (AI) chips. KeyBanc analysts emphasized the "favorable consequences" for Micron as Samsung has been having difficulties getting its high bandwidth memory (HBM) chips approved for use in Nvidia's graphic processing units (GPUs). They believe that Samsung is unlikely to have a significant share on Blackwell, providing Micron a chance to grow its share on memory chips used in AI GPUs. Consequently, KeyBanc increased its price target for Micron to $165 from $160.
Meanwhile, Monolithic Power Systems, another Nvidia associate, supplies power management solutions for Nvidia’s GPUs. There are expectations of Monolithic Power systems continuing to hold 80% or more share on Nvidia platforms due to Blackwell's higher power requirements compared to its predecessor, Hopper. As such, KeyBanc upgraded their Monolithic Power Systems price target to $975 from $850.