Micron and Nvidia's AI Cycles Face the September Effect Test

The September Effect is a phenomenon where U.S. stocks historically underperform in September across a 98-year data set.

For investors tracking artificial intelligence (AI) companies, this month can serve as a test of whether a stock's value rests on price momentum or business progress.

Micron Technology and Nvidia are two prominent AI-related stocks that have been making headlines with their latest product developments.

Micron is expanding its role in the AI infrastructure beyond just providing memory for GPUs, as it now supplies high-bandwidth memory (HBM) to Nvidia's Vera Rubin platform and has started shipping low-power memory and data center solid-state drives in large volumes.

Nvidia's new Vera Rubin platform combines GPUs, CPUs, networking, storage, and software into an AI factory, which can deliver 10 times the agent throughput of its previous Grace Blackwell platform at scale.

The author suggests that while the September Effect is worth noting, it shouldn't influence investment decisions in these stocks. Instead, investors should focus on whether the AI infrastructure cycle is producing new products, customer commitments, and deployments for Micron and Nvidia.