Google’s TurboQuant Announcement Sparks 5% Drop in Memory Stocks
Google has unveiled TurboQuant, its 3-bit compression algorithm for AI inference, prompting memory stocks (SanDisk -5%, Micron -4%, Western Digital -3.7%, Seagate -4%) to pull back on concerns over reduced DRAM demand. Lynx Equity Strategies retains a $700 price target on Micron, maintaining its buy recommendation.
1. TurboQuant Spurs Memory Stock Declines
Google’s release of TurboQuant, a 3-bit AI model compression algorithm, triggered declines in key memory suppliers Wednesday: SanDisk shares fell 5%, Micron dropped 4%, Western Digital slid 3.7% and Seagate lost 4% as investors weighed forecasts of reduced DRAM usage.
2. Analyst Doubts Oversell and Upholds Micron Target
Lynx Equity Strategies challenged claims of an 8x improvement, noting comparisons were made to outdated 32-bit models rather than the current 4-bit standard, yet reaffirmed its $700 price target and buy recommendation for Micron, citing persistent supply constraints supporting long-term memory demand.