Micron Technology Commences Production of Next-Gen Memory Chips for Nvidia's AI Semiconductor Line

Micron's HBM3E Memory Chips Drive Nvidia's Innovation

Feb 26, 2024 - 09:09
Feb 26, 2024 - 09:10
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Micron Technology Commences Production of Next-Gen Memory Chips for Nvidia's AI Semiconductor Line
Micron Technology Commences Production of Next-Gen Memory Chips for Nvidia

Micron Technology has announced the initiation of large-scale manufacturing for its latest high-bandwidth memory chips tailored specifically for integration into Nvidia's cutting-edge artificial intelligence chipsets. The revelation sparked a surge in Micron's stock prices by more than 4% ahead of Monday's market opening.

These state-of-the-art memory chips, branded as HBM3E (High Bandwidth Memory 3E), boast a remarkable 30% reduction in power consumption compared to rival offerings. This efficiency enhancement is poised to address the escalating demand for chips powering various AI applications.

Nvidia is slated to incorporate Micron's HBM3E chips into its forthcoming H200 graphic processing units, anticipated to hit the shelves in the second quarter, displacing the current H100 chip.

The heightened demand for high-bandwidth memory chips, primarily led by Nvidia's supplier SK Hynix, has injected optimism into investor sentiments regarding Micron's ability to navigate through a sluggish recovery in other market sectors.

Micron's HBM product line stands out as one of its most lucrative offerings, owing to the intricate technical processes involved in its production.

Previously, Micron had projected a revenue influx of "several hundred million" dollars from HBM sales in fiscal year 2024, with sustained growth anticipated into 2025.

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