InvestorPlace – Stock Market News, Stock Advice & trading Tips
The surge in demand for memory stocks underlines the sector’s growth. The increasing need for high-bandwidth memory (HBM), crucial for Nvidia’s (NASDAQ:NVDA) AI processors, is propelling investor interest.
Introduced by JEDEC in January 2022, the HBM3 standard represents a significant advancement in memory technology. Offering substantial improvements over its predecessor, HBM2E, it caters to high-performance computing (HPC) needs like AI, graphics, and networking.
Furthermore, HBM3 can support up to 32 Gb densities with stack heights reaching 16-high, providing a total capacity of 64 GB. It doubles the speed to 6.4 Gbps compared to HBM2E’s 3.6 Gbps, enhancing data transfer rates crucial for advanced computing tasks.
These advancements make the semiconductor market an enticing space for investors seeking high-growth opportunities.
SK Hynix (HXSCL)
Source: Shutterstock
SK Hynix’s (OTC:HXSCL) share price has witnessed a remarkable increase this year, driven by the rising demand for its HBM products.
Renowned for its DRAM and NAND flash memory chips, SK Hynix is a key player in the global electronics market, supplying essential components for computers, servers, and mobile devices.
Recently achieving a $100 billion market cap, SK Hynix stands as South Korea’s second-largest company, showcasing its competitive edge. The company also focuses on developing memory chips tailored for AI applications, making it a compelling stock to monitor.
Micron Technology (MU)
Source: Charles Knowles / Shutterstock.com
Micron Technology (NASDAQ:MU) is a U.S.-based company specializing in DRAM, NAND, and NOR flash memory products. Its innovations power technologies across various sectors, including data centers, consumer electronics, and automotive applications.
In February, Micron announced the commencement of volume production for its High Bandwidth Memory 3E (HBM3E) solution. This product’s key feature is the integration of Micron’s 24GB 8H HBM3E into Nvidia’s H200 Tensor Core GPUs, set for shipping in the second quarter of 2024.
With a pin speed exceeding 9.2 Gb/s and over 1.2 TB/s of memory bandwidth, Micron’s HBM3E enables swift data access across AI accelerators, supercomputers, and data centers, facilitating rapid computations and analyses.
Samsung Electronics (SSNLF)
Source: JPstock / Shutterstock.com
Although famous for its smartphones, TVs, and memory chips, Samsung Electronics (OTC:SSNLF) leads innovation across various tech domains. As the world’s largest memory producer, Samsung remains at the forefront of the AI revolution.
Earlier this year, Samsung saw its stock rise following reports suggesting it might become a supplier for Nvidia, solidifying its position in the memory chip market.
Additionally, Samsung unveiled its fifth-generation HBM3E chip, a 36-gigabyte, 12-stack high-performance memory chip. Nvidia’s graphics processing units could benefit significantly from Samsung’s HBM3E chips, positioning Samsung Electronics as a top memory stock amidst surging demand for HBM chips.
Shane Neagle, fascinated by the disruptive potential of technology in investing, specializes in fundamental analysis and growth investing.
More From InvestorPlace
The post Unforgettable Gains: 3 Memory Stocks to Own as the Market Heats Up appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.