Micron vs. Sandisk: Which AI Memory Stock Benefits More From Nvidia's $279 Billion Warning?
Memory has become a binding constraint for artificial intelligence (AI) data center build-outs.
Overview
The artificial intelligence (AI) memory landscape is in the middle of a messy, albeit very profitable, squeeze. Training runs are getting bigger, inference is moving into production, and every new rack of accelerators needs more bandwidth and bits sitting closer to the graphics processing unit (GPU). That is the setup fueling the memory supercycle.
The shortage is not a mystery. Wafer capacity is limited, and converting factory lines to high bandwidth memory (HBM) is tedious and costly. NAND supply is also tight, but for a different reason -- hyperscale storage requirements are being flooded by tokens that have to live somewhere after they leave the GPU.
Details
Micron Technology (NASDAQ: MU) is cashing in on both sides of this story. The company produces the HBM that sits on top of the GPU package, as well as the server DRAM that fills the rest of the stack. Sandisk (NASDAQ: SNDK) is riding the same wave, but from the storage side, shipping enterprise flash into the same data centers.
Source
Originally published at www.fool.com.