https://www.msn.com/en-us/news/other/google-ai-breakthrough-slams-memory-stocks/gm-GM5705FF34Micron’s stock came under heavy selling pressure after Google Research unveiled TurboQuant, a quantization algorithm that can reduce large language model memory requirements by up to six times without accuracy loss. For a company thriving on AI-driven demand for high-bandwidth memory, this efficiency leap is seen as potentially undermining future sales volumes.
Why efficiency gains could reshape demand outlook
Analysts warn that if AI developers can achieve the same performance with one-sixth the hardware, Micron’s pricing power and the ‘memory wall’ that has fueled its growth could erode. The risk is a cooling in the current AI infrastructure build-out phase, leading to oversupply if capacity expansion plans remain unchanged. While SK Hynix’s planned U.S. listing could divert investor funds in the short term, the larger threat is structural demand compression from such technological advances.
Memory prices to decrease?