Micron Technology (MU), a memory manufacturer, will benefit from the uptake of AI solutions due to the large amounts of memory and storage it requires. Currently, Micron’s results are in freefall, and earnings are likely to be negative over the next two quarters from the historic slump in PC sales and weakness in smartphones and consumer electronics, which unfortunately have outweighed the delicate supply-demand balance in the memory market. With limited competition, Micron and SK Hynix have announced drastic cost reductions for 2023, which should help rebalance supply and demand in the second half of 2023. Additionally, Micron achieved technological leadership within its limited competition last year. In the past six months alone, Micron became the first memory manufacturer to release DRAM 1-beta chips and the first manufacturer of 232-layer NAND flash memory chips. As the current leader in this space, and thanks to other market players seemingly cutting back on production, Micron should benefit in the second half of 2023 and beyond as demand for memory-intensive AI servers dramatically increases. Microsoft (MSFT) invested $1 billion (83m) inOpenAI in 2019, and now the cloud giant is reportedly in talks to invest another $10 billion (£8.34bn) in the company, which indicates great potential in this new and improved AI engine. Last week, Microsoft released the OpenAI service on its Azure platform, which allows developers to incorporate it into their software projects. In fact, Microsoft itself is looking to infuse its current software products, from Office to Bing, with ChatGPT capabilities. “Micron Technology (MU), a memory manufacturer, will benefit from the uptake of AI solutions due to the large amounts of memory and storage it requires.” Finance Monthly. Fron t Cove r Fea t ur e 11
RkJQdWJsaXNoZXIy Mjk3Mzkz