Shares of Micron (MU -2.45%) were among the winners this week after the memory-chip specialist benefited from general excitement about the chip sector and artificial intelligence (AI) with the start of CES earlier this week. The company also got a specific mention from AI leader Nvidia (NVDA -0.02%), which is using some Micron components in its new products.

According to data from S&P Global Market Intelligence, the stock was up 10.6% for the week through Wednesday's close. The market is closed today in remembrance of President Jimmy Carter.

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Micron gets a lift from Nvidia

The main piece of news driving Micron stock higher was that Nvidia will be using Micron's high-bandwidth-memory (HBM) in its new GeForce RTX 50 Blackwell GPUs that undergird its new advanced AI platform.

The partnership is the latest instance of the two companies working together, as Nvidia is now believed to be Micron's largest customer, making up 13% of its revenue. Micron's presence in the Blackwell platform is also a reminder to investors that the memory-chip company is capitalizing on the AI boom. The stock sold off on weak guidance in its fiscal first-quarter earnings report last month, but its latest numbers show AI demand is surging.

Data center revenue grew 40% sequentially and 400% year over year, and overall revenue was up 84% to $8.71 billion.

Nvidia's endorsement also seemed to help investors shrug off the company's weak second-quarter guidance, showing that it still has a lot of growth ahead in AI.

What's next for Micron?

Micron stock is also intriguing at this point because of its valuation. Even after this week's gains, the stock trades at a forward P/E of 14, making it a bargain compared to other chip stocks.

The memory subsector is highly cyclical, but it appears to be in a boom right now. Micron could easily move higher from here.