Micron’s Role in AI Chip Market
Micron Technology is anticipated to reap significant benefits from the increasing demand for artificial-intelligence semiconductors, as stated by Citi analyst Christopher Danely. The company has recently initiated “volume production” of its High Bandwidth Memory (HBM) 3E chips for Nvidia’s upcoming H200 graphics processing units, supporting its Buy rating on the stock with a target price of $95.
AI Expansion: Micron Joins the Party
Qualification at Nvidia and Potential with AMD
Christopher Danely notes, “Micron joins the AI Party,” emphasizing the company’s growing presence in the AI semiconductor realm. He suggests that Micron is the second DRAM company to qualify at Nvidia, following SK Hynix, and anticipates its qualification at AMD in the near future. This validation would mean that AMD approves Micron as a supplier of HBM chips for its AI GPUs.
In response to inquiries about qualifying its HBM3E for AMD, Micron did not provide immediate feedback. Similarly, an AMD spokesperson declined to comment on the matter.
Market Trends and Growth Potential
Estimates and Projections
Danely predicts that HBM chips will represent 17% of the dynamic random-access memory market this year, up from 10% in the previous year. He forecasts that Micron will surpass analysts’ expectations with its performance, positioning itself strongly in the AI semiconductor sector.
Micron is known for its expertise in DRAM utilized in desktop computers and servers, as well as flash memory present in smartphones and solid-state hard drives.
Micron’s Vision for AI
Commitment and Outlook
Sumit Sadana, Micron Chief Business Officer, emphasized the company’s readiness to support the expanding AI landscape with its comprehensive HBM3E and HBM4 product portfolio. Micron is optimistic about its ability to facilitate substantial growth within the AI sector.
