On Monday, Wells Fargo reiterated its Overweight rating on Micron Technology (NASDAQ:MU) with a stock price target of $95.00, as the company began volume production of its HBM3E solutions. The 24GB 8-High HBM3E is now integrated into NVIDIA (NASDAQ:NVDA)'s H200 GPUs, and the 36GB 12-High HBM3E solution is currently in the sampling phase. Micron's HBM3E solutions boast significant performance features, such as pin speeds over 9.2Gb/s and memory bandwidth exceeding 1.2TB/s.
The company emphasized its competitive edge in power efficiency, claiming approximately 30% lower power consumption compared to similar offerings. Micron's HBM3E design incorporates 1-beta DRAM and advanced through-silicon via (TSV) technology, contributing to innovative 2.5D and 3D packaging solutions. According to TrendForce, Micron leads in the production of 1-beta DRAM, with this process representing about 8% of its output in the fourth quarter of 2023, compared to Samsung (KS:005930) and SK Hynix's 0% and 1%, respectively.
Micron also announced that its 24GB 8-High HBM3E solutions are being integrated into NVIDIA's new H200 datacenter GPUs. Meanwhile, the 36GB 12-High HBM3E solution, which will provide more than 1.2TB/s of memory bandwidth, is expected to start sampling in March 2024. These advancements will be showcased at NVIDIA's GTC event on March 18th, and NVIDIA plans to begin shipping the H200 in the second quarter of 2024.
Micron is scheduled to report its F2Q24 results on March 20th. The company has projected that its HBM3E solutions will generate several hundred million dollars in revenue in fiscal 2024. This forecast is supported by Micron's aim to achieve a market share for its HBM3E solutions comparable to its overall DRAM market share by 2025, which was approximately 23% in 2023. The anticipated growth is attributed to the complex design and qualification cycles of HBM3E solutions.
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