Micron starts mass production of memory chips for use in Nvidia's AI semiconductors
Micron Technology has started mass production of its high-bandwidth memory (HBM) semiconductors for use in Nvidia's latest chip for artificial intelligence, sending its shares up more than 5% on Monday.
The HBM3E (High Bandwidth Memory 3E) will consume 30% less power than rival offerings, Micron said, and could help tap into soaring demand for chips that power generative AI applications.
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«I think this is a huge opportunity for Micron, especially since the popularity of HBM chips seems to only be increasing for AI applications» said Anshel Sag, an analyst at Moor Insights & Strategy.
Demand for HBM chips, a market led by Nvidia supplier SK Hynix, for use in AI has also raised investor hopes that Micron would be able to weather a slow recovery in its other markets.
Since «SK Hynix has already sold out its 2024 inventory, having another source supplying the market can help GPU makers like AMD, Intel or NVIDIA scale up their GPU production as well,» Sag added.
HBM is one of Micron's most
