Micron Initiates Production of Memory Chips To Use in Nvidia's AI By CIOTechOutlook Team

Micron Initiates Production of Memory Chips To Use in Nvidia's AI

CIOTechOutlook Team | Tuesday, 27 February 2024, 02:34 IST

Micron Innovation has begun large scale manufacturing of its high-transmission capacity memory (HBM) semiconductors for use in Nvidia's most recent chip for artificial intelligence, sending its portions up over 5%. The HBM3E (High Transmission capacity Memory 3E) will consume 30% less power than rival contributions, Micron said, and could help tap into taking off interest for chips that power generative AI intelligence applications.

Nvidia will involve the chip in its cutting edge H200 realistic handling units, expected to begin transporting in the subsequent quarter and surpass the ongoing H100 chip that has fueled a gigantic flood in income at the chip creator.

"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.

Interest for HBM chips, a market drove by Nvidia provider SK Hynix, for use in Gen AI has likewise raised financial backer expectations that Micron would have the option to climate a sluggish recuperation in its different business sectors.

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 quite possibly of Micron's most beneficial item, to some extent due to the specialized intricacy engaged with its development. The organization had recently said it anticipates "a few hundred million" dollars of HBM income in monetary 2024 and proceeded with development in 2025.