Micron stock rises, driven by Facebook Metaverse needs

U.S. memory maker Micron Technology’s shares soared to a new five-month high, driven by foreign investors’ optimism that the memory industry is improving and the stock price is expected to rebound. The metaverse seems to be benefiting Micron, a manufacturer specializing in RAM and VRAM chips. Micron’s shares have risen as much as 20% as the company would play a central role in Facebook’s metaverse.

Micron’s stock is up 20% on the spread of Metaverse

Currently, RAM and VRAM manufacturing is primarily focused on Micron, Samsung, and SK Hynix. This year, Micron’s shares have fallen from $95 to just $66. The reason for the decline in the stock is the fall in the price of memory chips. But thanks to metaverses, the company’s shares have risen by 20%.

The reason for the increase is due to metaverse’s hardware requirements. Special servers are required to handle large workloads. This means that MetaVerse must have a large amount of RAM. But it’s not the only company improving its forecasts courtesy of Facebook.

Related:   The Realme XT will be the first phone with a Samsung ISOCELL Bright GW1 64MP main camera

It seems that Facebook’s Metaverse (now renamed Meta) is doing well for many companies. Companies that specialize in gaming and virtual reality are also benefiting. NVIDIA has gone from a market value of $600 billion to $800 billion.

NVIDIA is benefiting greatly from the fact that Meta needs graphics cards. GPUs will be one of the foundations on which metaverses can be developed. Jensen Huang has already talked about the purported benefits of metaverse at GTC 2021.

Wall Street financial analysts have indicated that memory chips will also be critical. RAM and VRAM will be critical to the computing power needed in the metaverse.

Micron surged 7.8% to close at $83.03 on June 19, a new closing high since June 30. Lam Research rose 1.37% to close at $644.50, a new closing high since Aug. 6.