Google’s 3-Bit TurboQuant Algorithm Sends Western Digital Shares Down 3.7%
Western Digital shares fell 3.7% after Google unveiled its TurboQuant 3-bit AI compression algorithm, joining similar declines at Micron and Seagate. A Lynx Equity Strategies analyst said the technique offers limited gains versus current 4-bit models and will not curb DRAM/flash demand over the next three to five years.
1. Impact of TurboQuant on Western Digital
Western Digital shares slid 3.7% following Google’s announcement of TurboQuant, a 3-bit compression algorithm meant to reduce AI memory requirements. The pullback mirrored declines at Micron (4%) and Seagate (4%), despite gains in the broader technology sector.
2. Analyst’s View on Innovation
KC Rajkumar of Lynx Equity Strategies challenged claims of an 8× improvement, noting comparisons were made against outdated 32-bit models rather than the current 4-bit standard. He argued that TurboQuant’s incremental benefits do not represent a breakthrough.
3. Long-Term Memory Demand Outlook
The analyst maintained that advanced compression techniques will ease inference bottlenecks but won’t eliminate the need for DRAM and flash storage. Ongoing supply constraints are expected to sustain memory demand over the next three to five years.