Understanding the September Effect: Insights from 98 Years of Data on Micron and Nvidia for Investors

Key Points

• Micron’s memory and storage products are important pieces of the broader AI infrastructure stack.

• Nvidia’s new Vera Rubin architecture shows how the chipmaker is targeting the entire AI system, from GPUs and CPUs to networking and software.

• September can bring increased volatility to stocks, but investors should focus on whether their underlying businesses are still making progress.

Micron Technology (NASDAQ: MU) has emerged as a key player in AI infrastructure, producing high bandwidth memory (HBM) that supports Nvidia’s new Vera Rubin platform. Micron’s HBM4 can deliver more than 2.8 terabytes per second of bandwidth, while its SOCAMM2 memory offers up to 2 terabytes of memory per CPU. These advancements signify Micron’s broader role beyond just memory supply, as AI systems increasingly rely on efficient data management and storage.

Nvidia (NASDAQ: NVDA) is also evolving its approach with the Vera Rubin platform, which integrates GPUs, CPUs, and networking to enhance AI operational efficiency. The platform reportedly delivers ten times the agent throughput of its predecessor, illustrating Nvidia’s commitment to scaling AI capabilities across various workloads. With AI infrastructure becoming more intricate, both companies are strategically positioned amid this rapidly changing technology landscape.

September often sees stock volatility, with historical data indicating it as one of the weakest months for U.S. stocks. However, investors should assess whether fluctuations in Micron and Nvidia’s stock prices reflect market dynamics or actual changes in business fundamentals, particularly as both companies navigate the evolving AI infrastructure cycle.