Micron Technology Inc.'s (NASDAQ: MU) stock surged 7.22% on Tuesday amid strong investor optimism following Nvidia Corp.'s (NASDAQ: NVDA) unveiling of its latest AI-infused gaming chips at the Consumer Electronics Show (CES) in Las Vegas.

At the highly anticipated event, Nvidia CEO Jensen Huang announced that the company's new GeForce RTX 50 family of gaming graphics processing units (GPUs) will incorporate memory solutions from Micron. The GPUs, part of Nvidia's RTX Blackwell series, boast groundbreaking features powered by artificial intelligence (AI) technology, including advanced ray tracing capabilities and AI-generated imagery.

Huang's announcement highlighted Micron's critical role as a supplier of high-performance memory chips essential for powering the next generation of AI-driven computing applications. The news fueled a rally in Micron's stock, extending its gains from the previous trading session when it soared over 10% on expectations of robust demand for its chips from the booming AI industry.

Analysts view the partnership as a positive development for Micron, as tech giants like Microsoft pledge massive investments in AI data centers, fueling demand for the company's cutting-edge memory solutions. The company's high-bandwidth memory (HBM) technology is already incorporated into AI powerhouses like Nvidia's latest processors, positioning Micron to capitalize on the escalating AI demand.