Micron Technology stock is posting big gains in Tuesday's trading. The memory chip and storage solutions company's share price was up 7.1%.

Micron's valuation is getting a big boost following a recent report that the company is ramping up its production of key components for Nvidia. Micron also unveiled a new solid state drive (SSD) for the consumer market today.

A recent report from Business Korea suggests that Micron is increasing its production of high-bandwidth-memory (HBM) solutions for Nvidia. Micron's 12-stack HBM3E solution is said to offer best-in-class performance, with 20% lower power consumption and 50% higher memory capacity compared to 8-stack offerings from competitors.

The report also suggests that Micron's next-generation HBM4 chips will go into mass production in 2026. Adding another bullish catalyst, a separate report suggests that Nvidia is teaming up with Micron, SK hynix, and Samsung to develop System On Chip Advanced Memory Module (SOCAMM) -- a new standard for memory chips.

Before the market opened today, Micron also announced its new PCIe Gen5 NVMe solid state drive (SSD) for the consumer market. While the enterprise market and artificial intelligence (AI) have become bigger performance drivers for the company, the consumer market is still a substantial revenue driver -- and it's encouraging to see the company delivering significant performance improvements with its new SSD.

What's next for Micron?

Micron stock has seen high levels of volatility over the last year. While the company's share price is up roughly 34% across the stretch, it's also still down roughly 31% from its high even with today's gains.

Given the cyclical nature of the memory chip industry and the difficulties in predicting where demand trends are going next, the company's share price will likely continue to see substantial swings as new indicators continue to arrive. On the other hand, the company looks poised to benefit from lasting demand tailwinds connected to AI data center spending -- and its stock looks like a worthwhile long-term investment.