Micron MU has launched the low-power compression attached memory module (LPCAMM2). The newly introduced LPCAMM2 improves performance, power efficiency and space consumption compared with the small outline dual inline memory modules (SODIMMs) that have been used since the late 1990s.
The LPCAMM2 achieves its compact modularity without compromising on processing power through its innovative form factor that makes it ideal for portable workstations and its applications in generative artificial intelligence (AI). Additionally, Micron claimed to provide an 80% reduction in system standby power consumption, enhancing battery life and making it well-suited for laptops.
The LPCAMM2 is integrated with the LPDDR5X DRAM that Micron builds in its 1-beta process node to enable faster peak bandwidth for AI inference at the edge. With LPDDR5X, the LPCAMM2 outperforms SODIMM in web browsing, word processing, photo and video editing and other PC Mark-10 Essential workloads.
Micron Technology, Inc. Price and Consensus
Micron Technology, Inc. price-consensus-chart | Micron Technology, Inc. Quote
The LPDDR5X, with a speed of 9,600 Mbps, outperforms SODIMMs operating at 5,600 Mbps, making it sufficiently robust for integration into compact devices. Previously, the memory solution has been used by mobile manufacturers like Qualcomm QCOM.
In October 2023, Qualcomm and Micron collaborated to introduce mobile platforms featuring edge-based generative AI capabilities. Qualcomm integrated Micron's LPDDR5X memory, leveraging its double data rate capabilities to efficiently handle AI applications with minimal latency and high bandwidth demands.
Innovative Product Launches Aid Micron
The company is working closely with Lenovo, Compal and Intel INTC to build and deploy the chip for real-life use cases. Lenovo collaborated with Micron in this venture to bring this memory solution to the market through its laptops. Compal partnered with MU to develop platforms based on artificial intelligence while using Micron's LPCAMM2 memory solutions.
In collaboration with industry PC leaders, Intel and Micron are in the process of deploying optimized platform designs through MU's LPCAMM2 form factor so that Intel's partners across industries can use this low-power memory technology.
MU’s better-than-expected first-quarter fiscal 2024 performance, along with sequential growth across all key metrics, reflects the benefits of an improving supply-demand environment and signals that the industrywide sluggish period is nearing its end and the company is moving back to profitability.
The expectation of supply normalization by the middle of 2024 is likely to drive pricing, while the boom in artificial intelligence spending is expected to fuel demand for its chips used in the data center end market. Adoption of 5G networks, cloud computing and digital transformation is likely to further fuel the demand for its memory chips.
Zacks Rank
While Micron and Qualcomm carry a Zacks Rank #2 (Buy), Intel has a Zacks Rank #4 (Sell) at present. Shares of MU, QCOM and INTC have returned 41.9%, 17.7% and 59%, respectively, in the past year.
Other Stock to Consider
Another top-ranked stock from the broader technology sector is Kanzhun BZ, which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kanzhun's fourth-quarter 2023 earnings per share has been revised downward by 2 cents to 16 cents in the past 30 days. Shares of BZ have plunged 37.7% in the past year.
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