Summary: Growing demand for artificial intelligence (AI) applications is expected to drive significant growth for memory chipmakers, according to Citi. The Wall Street bank predicts that specialized memory and storage products for AI chips will capture a larger share of the market, reducing volatility. Additionally, Citi anticipates that new memory chips will emerge to enable on-device AI in consumer devices, such as PCs and mobile phones.
Citi analysts, led by Peter Lee, believe that the memory market will evolve towards increased product optimization to meet the diverse needs of customers in the AI era. High bandwidth memory (HBM) and multi-ranked buffered DIMMs (MRDIMM) are expected to experience wide adoption due to their suitability for AI applications. HBM provides greater bandwidth to accelerate parallel computing, while MRDIMM supports expanded memory capacity. Citi estimates that these chips will grow from 3.8% of total DRAM shipments in 2024 to 8.8% in 2027.
SK Hynix and Micron are identified by Citi as potential beneficiaries of the growth in “semi-customized” memory chips. The investment bank projects a 63% rise in SK Hynix shares and an 11% increase in Micron Technology shares over the next 12 months.
Furthermore, AI processing is expanding beyond centralized server farms and making its way into consumer devices. Citi predicts the emergence of new memory chips that enable on-device AI, offering low power consumption and high bandwidth. Dell, known for its innovation in the PC market, is actively developing next-generation memory chips called “Compression Attached Memory Module” for thin laptops. Citi expects Dell’s shares to rise by 9.8% to $84 in the next 12 months, driven by this trend.
In conclusion, the demand for AI applications is propelling strong growth in the memory chip industry. As the market recovers and diversifies, chipmakers are expected to produce more specialized and complex chips for AI, leading to increased product optimization and reduced volatility.
The source of the article is from the blog lanoticiadigital.com.ar