Micron Technology has officially started mass production of its High-Bandwidth Memory (HBM3E) semiconductors, designed for utilization in Nvidia’s latest artificial intelligence chip. This development resulted in a four percent surge in Micron’s shares ahead of Monday’s market opening. The HBM3E is anticipated to be more power-efficient, consuming 30 percent less power compared to rival offerings, addressing the escalating demand for chips fueling generative AI applications.
Nvidia is set to integrate the HBM3E chip into its upcoming H200 graphic processing units, slated for shipment in Q2. This next-generation chip aims to surpass the existing H100, which has significantly contributed to Nvidia’s revenue growth. The heightened demand for High-Bandwidth Memory (HBM) chips, primarily supplied by Nvidia’s vendor SK Hynix, has raised investor optimism regarding Micron’s resilience amid a sluggish recovery in other market segments.
HBM represents one of Micron’s most lucrative product lines, partly due to the intricate technical nature of its production. Micron had previously forecasted “several hundred million” dollars in HBM revenue for fiscal year 2024, with expectations of continued growth into 2025.
