Artificial intelligence (AI) is turning out to be a catalyst for multiple companies in the semiconductor industry, from bellwether Nvidia to Advanced Micro Devices and even Intel, which explains why shares of these companies have jumped impressively so far this year.

Micron Technology (NASDAQ: MU) has now joined the league of chipmakers whose shares are getting a boost from AI adoption. This is evident from the 16% surge in Micron's shares in the past month despite the absence of any company-specific event that could have impacted its stock price. However, a closer look at the developments in the market for AI chips will highlight just why that's the case.

Micron is known for manufacturing memory chips such as dynamic random access memory (DRAM) and NAND flash storage. This market has witnessed a severe downturn in recent quarters as sales of smartphones and personal computers have declined sharply. This is why Micron's revenue and earnings have declined big time recently.

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Source Fool.com