Goldman Sachs has made a bold prediction following the launch of NVIDIA Corp’s (NASDAQ:NVDA) latest artificial intelligence chips. The investment bank expects significant growth for the memory chips used in AI systems, which could potentially benefit three major memory chip manufacturers.
What Happened: Goldman Sachs is anticipating a substantial expansion in the total addressable market for high-bandwidth memory (HBM) chips, driven by the demand for Nvidia’s new Blackwell GPU chips. The bank predicts the market to grow tenfold to $23 billion by 2026, up from $2.3 billion in 2022, reported CNBC.
The three primary beneficiaries of this burgeoning HBM market, as per Goldman Sachs, are SK Hynix, Samsung Electronics Co (OTC:SSNLF), and Micron Technology (NASDAQ:MU). The bank also expects these stocks to gain a boost from the market expansion.
Goldman Sachs analysts, led by Giuni Lee, pointed out that the increasing demand for AI servers and the higher memory chip density per GPU are the key factors driving their optimistic outlook. They also highlighted the challenges faced ...