MU - Did Micron Fall Behind in Artificial Intelligence Memory?
2023-07-02 09:00:00 ET
Micron Technology (NASDAQ: MU) is one of only three companies that makes both DRAM and NAND flash memory chips, which will be key components of any artificial intelligence system.
With strong AI tailwinds, one would think Micron's results and stock would be surging. While the stock is up about 26% on the year, it has lagged other AI plays and sold off after its third-quarter report on June 28.
Unfortunately for Micron, AI chip demand is not yet enough to offset the historic declines in the mature PC and smartphone markets, which still make up a large portion of all memory demand. Moreover, Micron appears to be behind one of its major competitors in high-bandwidth memory (HBM), a segment of the memory industry set to grow by leaps and bounds thanks to the advent of generative AI.
For further details see:
Did Micron Fall Behind in Artificial Intelligence Memory?