Micron (MU) is primarily recognized for its memory chips but is now prioritizing automotive storage as well as AI storage. Recently, Micron began testing automotive UFS 4.1 Flash storage. It is designed to offer quicker data access, enhanced reliability, and improved AI performance in modern vehicles. How interesting? More importantly, how will this drive Micron's data center development?
Since AI will positively benefit from increasing usage, this type of memory should keep Micron competitive and allow it to sustain significant sales levels.
Automotive storage may not facilitate rapid overnight growth for Micron and contribute a cog to Micron's growth story. The real growth story comes from AI and data center memory. Micron's competitors, such as Samsung and SK Hynix, are improving their AI memory capabilities and will impact Micron's profits.
If Micron can produce memory that works in cars, it can use the same technology in data centers. Fast and reliable memory will also be useful for artificial intelligence devices on the ground too, not just cars.
If the answer is yes, Micron could position itself as a serious player in AI memory and cloud computing for cars as well as for cloud computing applications for a long time to come.
Who would have imagined that your car's memory could also speed up cloud apps?
Micron's AI and Data Center Initiatives
Micron is a memory manufacturer that serves applications spanning AI logic boards, data centers, and automotive storage needs. Micron's development of 192GB SOCAMM2 modules is targeted toward AI data centers and is a clear statement that Micron wants to focus on high-demand products.Since AI will positively benefit from increasing usage, this type of memory should keep Micron competitive and allow it to sustain significant sales levels.
Automotive storage may not facilitate rapid overnight growth for Micron and contribute a cog to Micron's growth story. The real growth story comes from AI and data center memory. Micron's competitors, such as Samsung and SK Hynix, are improving their AI memory capabilities and will impact Micron's profits.
Importance of Automotive Memory for Data Centers
Why does automotive memory matter? Because there's a level of complexity in today's cars that looks just like a mini data center. Cars consume a lot of memory today for artificial intelligence, self-driving systems, and infotainment.If Micron can produce memory that works in cars, it can use the same technology in data centers. Fast and reliable memory will also be useful for artificial intelligence devices on the ground too, not just cars.
Investment Outlook
Micron is projecting $53.6 billion in revenue and $13.6 billion profit by fiscal 2028, requiring a compound growth of 16.6% each year. By leveraging some of its automotive AI memory to bolster data centers, the company can enhance its share of high-margin products, boost investor confidence, and remain competitive in the memory market. However, beware, since earnings may not be stable owing to heavy competition.Closing Thoughts
In summary, Micron's automotive AI memory is not just memory for cars, but could potentially bolster its AI and data center business as well. The ultimate question is obviously whether or not it can apply the memory technology both to cars and data centers.If the answer is yes, Micron could position itself as a serious player in AI memory and cloud computing for cars as well as for cloud computing applications for a long time to come.
Who would have imagined that your car's memory could also speed up cloud apps?
