MU - 1 Cheap AI Stock to Buy Right Now Before It Sets the Market on Fire
2023-08-03 06:45:00 ET
The memory industry is expected to win big from the growing proliferation of artificial intelligence (AI) as the technology is expected to create huge demand for both storage and compute solutions, and this explains why shares of South Korean memory manufacturer SK Hynix surged recently.
SK Hynix released its second-quarter 2023 results on July 26. The company remarked that the "demand for AI server memory has increased rapidly" amid the growing adoption of generative AI applications such as ChatGPT . The company backed up this claim with some solid numbers, pointing out that its revenue increased 44% sequentially thanks to a surge in demand for high-bandwidth memory (HBM) and DDR5 dynamic random access memory (DRAM), which are deployed in AI servers.
Hynix now expects sales of these high-end DRAM chips to more than double in 2023 amid the AI boom . This indicates that AI could bring an end to the slump in the memory market, which has been in a state of disarray in recent quarters on account of weak demand and oversupply. This is good news for Micron Technology (NASDAQ: MU) , a chipmaker that could take advantage of the AI-driven memory demand. Let's look at the reasons why.
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1 Cheap AI Stock to Buy Right Now Before It Sets the Market on Fire