Micron Technology officially announced the mass production of HBM3E, which will be used in NVIDIA's H200, leading to a 4% increase in stock price.
Micron Tech also mentioned that HBM3E will be used in NVIDIA's production in the future, with shipments expected to begin in the second quarter of this year.
Prior to this, it was exclusively revealed by Wall Street News from multiple supply chain sources that, like SK Hynix, Micron Tech has also become a memory supplier for NVIDIA, providing HBM3E products.
Micron Tech CEO Mehrotra disclosed that the HBM3E designed specifically for AI and supercomputers by Micron Tech is expected to begin mass production in early 2024, with the potential to generate hundreds of millions of dollars in revenue in the 2024 fiscal year.
On Monday local time, Micron Tech confirmed this news in a press release.
According to Micron Tech, the company has started mass production of HBM3E, with the current chip capacity at 24GB, higher than the previous generation HBM3's 16GB, and with 30% lower power consumption compared to competitor products.
Micron Tech also stated that HBM3E will be used in NVIDIA's production in the future, with shipments expected to begin in the second quarter of this year. The H200 is expected to surpass the current H100 and become a significant driver of NVIDIA's revenue growth.
The HBM series of chips has reignited hope for Micron Tech on Wall Street. After the press release, Micron Tech's stock rose by over 5% at one point during trading.
In response to this, analyst Anshel Sag from Moor Insights & Strategy commented:
"I believe this is a huge opportunity for Micron Tech, especially as the popularity of HBM chips continues to increase in AI applications."
NVIDIA's H100 and H200 are currently the most sought-after GPUs on the market, naturally driving up the demand for HBM. With Micron Tech starting mass production of HBM3E and entering the competition with Samsung and SK Hynix, the HBM market in 2024 is bound to be very lively.
Sag added, "Since 'SK Hynix has already sold out its 2024 inventory, (Micron Tech) as another supply source can help GPU manufacturers like AMD and Intel expand the production scale of GPUs."