Micron Technology Starts Mass Producing Memory Chip for Nvidia AI GPUs

Micron Technology begins mass production of a high-bandwidth memory chip for Nvidia's AI GPUs, leading to a surge in stock prices.
Micron Technology Starts Mass Producing Memory Chip for Nvidia AI GPUs
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Micron Technology Starts Mass Producing Memory Chip for Nvidia AI GPUs

Micron Technology’s Latest Innovation

Micron Technology has announced the commencement of mass production for a high-bandwidth memory chip designed for use in Nvidia’s artificial intelligence graphic processing units (GPUs). This development has led to a significant surge in Micron Technology’s stock prices, with shares up over 5% in intraday trading.

An office building with the Micron Technology logo Image for illustrative purposes

The Impressive HBM3E Chip

The 24-gigabyte 8H High Bandwidth Memory 3E (HBM3E) produced by Micron will be integrated into Nvidia’s H200 Tensor Core GPUs. This cutting-edge memory chip is set to enhance performance significantly and is expected to start shipping in the second quarter. Moreover, the HBM3E chip boasts a 30% reduction in power consumption compared to its competitors, making it a more energy-efficient option for data centers.

Micron’s Strategic Positioning

Sumit Sadana, the executive vice president and chief business officer at Micron, emphasized the importance of memory bandwidth and capacity in AI workloads. He stated that Micron is well-prepared to support the growing demands of AI with the HBM3E chip and the upcoming HBM4. This strategic positioning aligns with Micron’s vision for the future of AI technology.

Positive Revenue Projections

In a recent statement to investors, Micron’s CEO, Sanjay Mehrotra, projected a substantial increase in revenue from the HBM series. Mehrotra anticipates generating several hundred million dollars of HBM revenue in fiscal 2024, with continued growth expected in 2025. These optimistic projections have further fueled investor confidence in Micron Technology.

Market Response and Future Outlook

Following the announcement of the mass production of the HBM3E chip, Micron Technology’s shares experienced a notable increase, reaching $90.50 as of 2:50 p.m. ET on Monday, marking their highest level since early 2022. This positive market response underscores the significance of Micron’s latest technological advancement in the realm of AI GPUs.

As Micron Technology continues to innovate and collaborate with industry leaders like Nvidia, the future of AI technology looks promising, with advancements in memory chips paving the way for enhanced performance and energy efficiency in data processing.

Investors and tech enthusiasts alike are eagerly anticipating the impact of Micron’s HBM3E chip on the AI landscape, as the company solidifies its position as a key player in the evolving tech industry.