"Last week's selloff was triggered by reports that Alphabet developed TurboQuant, an AI memory-compression algorithm reducing memory needs for large language models by up to 83%. The market reacted sharply, but analysts are now pushing back on the severity of that reaction."
"Analysts at Morgan Stanley reaffirmed Micron's Overweight rating after the TurboQuant selloff, stating that memory supply acts as a critical bottleneck for AI development and that the strength in memory stocks is more durable than the market perceives."
"Micron's HBM capacity is sold out for all of 2026, a clear signal that near-term demand remains structurally intact. Micron's HBM4 memory, designed for NVIDIA's Vera Rubin platform, is in mass production."
Micron Technology shares increased by 9% after a previous decline of 14.55%. This rebound suggests investors are reevaluating the selloff triggered by fears of Google's TurboQuant algorithm. Analysts believe the selloff was overblown, emphasizing that memory supply remains crucial for AI development. Micron's HBM capacity is sold out for 2026, indicating strong demand. The company's stock has risen 27% year-to-date, and a $1,000 investment in Micron a decade ago would now be worth approximately $29,919.
Read at 24/7 Wall St.
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