Micron Technology, a hardware company that sells products used by data centers, could benefit from the booming artificial intelligence (AI) market. While Nvidia has dominated the AI scene with its graphics processing units (GPUs), Micron’s new high-bandwidth memory (HBM) technology could offer a competitive edge.
Nvidia’s stock has soared this year, driven by strong sales of its H100 GPU. Investors were stunned when the company projected a 53% increase in sales for the current quarter. Micron, on the other hand, hasn’t made much of a splash in the HBM3 market. However, the company plans to roll out its next-generation HBM3 product early next year, which could be a game-changer.
During Micron’s recent earnings call, CEO Sanjay Mehrota expressed confidence in the company’s new HBM3 product and expects “meaningful revenues” in the coming year. Micron’s chips are touted as superior in terms of performance, bandwidth, and power consumption. Notably, Micron has announced a partnership with Nvidia to develop a low-power memory product for use with Nvidia’s GH200.
The next-generation HBM3 products, referred to as HBM3e, are expected to hit the market in 2024. While Nvidia’s H100 GPU is priced at around $30,000, the estimated cost of HBM needed for each installation is only around $1,200 to $1,380. This presents a potential growth opportunity for Micron, especially if it can capture a significant share of the HBM market.
Investors should consider the potential for Micron’s stock to rally in the AI GPU market. While Nvidia has been the clear winner in recent years, Micron’s stock has room for growth. Analysts are optimistic about Micron’s future prospects, and Deutsche Bank recently upgraded the stock to a buy rating.
As the AI market continues to thrive, Micron’s new HBM3 technology and its partnership with Nvidia could position the company for success. With the potential for increased market share and strong revenue growth, Micron is a stock to watch in the AI space.
So, readers, what do you think about Micron’s prospects in the AI market? Will its HBM3 technology give it a competitive edge? Share your thoughts and join the discussion in the comments below.
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