This Monster AI Stock Is Set for a Rough Start to 2025

Training and running advanced artificial intelligence (AI) models requires powerful accelerators, and those accelerators, in turn, require ultra-fast memory chips capable of moving data quickly. While PCs, servers, and smartphones can make do with standard memory chips, AI accelerators generally use high-bandwidth memory (HBM).As such, HBM is in high demand, and memory chip manufacturers like Micron (NASDAQ: MU) have been shifting some of their production capacity to take advantage. While this shift was expected to help prop up prices for standard memory chips by somewhat constraining their supply, that's not what's happening. Instead, demand for standard memory across most of Micron's end markets is weak enough that prices for those chips are set to plunge in the first quarter of 2025.While strong demand for HBM will soften the blow for Micron, it appears that a memory chip market downturn has arrived. TrendForce put out its estimates for memory chip prices late last month, and the figures are rough.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool