Micron Technologies (MU) is climbing for a second straight day after Nvidia (NVDA) noted that it was using MU's chips in its new products. After advancing 10.5% yesterday, the shares are climbing 6% today.

Nvidia CEO Jensen Huang reported yesterday that Micron's high-bandwidth-memory (HBM) chips were being incorporated into NVDA's new GeForce RTX 50 Blackwell gaming chips.

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Considered a key component of AI, HBM has been an important growth engine for Micron. During the company's fiscal first-quarter earnings call, held on Dec. 18, Chief Business Officer Sumit Sadana noted that HBM, combined with SSD chips, had enabled the company's revenue from data centers to soar 400% versus the same period a year earlier during the quarter. Adding that HBM had become a multiple billion-dollar business, Sadana noted that more than half of the company's revenue was being generated by data centers.

Foxconn's Strong Results and Micron's Presence on Evercore's List

MU stock was also likely lifted yesterday by the slightly stronger-than-expected Q4 results reported by electronics maker Foxconn.  The largest manufacturer of Apple's (AAPL) iPhones, Taiwan-based Foxconn reported Q4 sales of 2.13 trillion  New Taiwan dollars or $65 billion.  Analysts had expected the company’s revenue to come in at 2.1 trillion New Taiwan dollars, according to an average compiled by LSEG SmartEstimate. Micron sells chips to Apple.

Also yesterday, Micron was included on a list of stocks called  “AI Enablers, Adopters and Adapters.”  Compiled by investment bank Evercore ISI, the list includes members of the Russell 3000 index whose market caps are above $3 billion and whose previous earnings calls include more references to AI than average for Russell 2000 members in the previous four quarters.

Additionally, the stocks on the had to have had a positive reaction to their earnings, while their forward P/E ratios trade below their five-year average. Finally, Evercore ISI predicts that the earnings per share of all of the names on the list will increase by at least 9.6%.

While we acknowledge the potential of MU, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ ALSO  8 Best Wide Moat Stocks to Buy Now  and  30 Most Important AI Stocks According to BlackRock Disclosure: The author owns shares of MU but has no plans to trade them in the next 48 hours. This article is originally published at Insider Monkey.