High-Performance Memory Chip Supply To Stay Tight In 2024 Amid Surging AI Demand, Major Manufacturers Face Shortages
Portfolio Pulse from Benzinga Neuro
The global supply of high-performance memory chips is expected to remain tight through 2024 and into 2025 due to surging demand for AI technology. Major manufacturers like SK Hynix and Micron Technology Inc (MU) face shortages, with Samsung Electronics (SSNLF) also in the race, particularly with its advanced 12-layer HBM3E chips. This situation is exacerbated by intense competition and geopolitical factors, including U.S.-China semiconductor spending and discussions on AI risks. NVIDIA Corp (NVDA) is anticipated to benefit from strong demand, impacting pricing power and market dynamics.
May 14, 2024 | 6:45 am
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Micron Technology Inc faces shortages of high-bandwidth memory chips through 2024 and 2025, impacting its ability to meet surging AI demand.
Micron's direct mention as facing shortages indicates a potential negative impact on its ability to capitalize on the AI-driven demand surge, likely affecting its stock negatively in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
NVIDIA Corp is expected to benefit from strong demand for AI chipsets, with HSBC Global Research predicting strong pricing power and upside surprises through fiscal-year 2026.
NVIDIA's expected strong demand for AI chipsets and HSBC's positive outlook suggest a positive impact on its stock price in the short term, driven by its leading position in the AI market.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80
POSITIVE IMPACT
Samsung Electronics is leading in the production of advanced 12-layer HBM3E memory chips, crucial for AI technologies, with mass production and industry-first achievements.
Samsung's early mass production and achievements in advanced memory chips position it well to capitalize on the AI demand, potentially positively impacting its stock in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 85