Micron Shares Plunge 23% After Google’s TurboQuant Sparks Memory Demand Worries
Micron stabilized after a 23% drop over six sessions following Google’s TurboQuant compression tech, which could reduce AI memory requirements and curb chip demand. A 7% single-session slide pressured peers, yet President Trump hailed Micron as a top U.S. AI memory supplier after meeting CEO Sanjay Mehrotra.
1. Stock Decline Driven by TurboQuant Concerns
Micron shares fell 23% over six trading sessions, accelerating with a 7% drop in the most recent session. Investors reacted to Google’s TurboQuant compression technology, which promises lower memory requirements for AI workloads and raises doubts about future demand for DRAM and advanced memory chips.
2. Potential Impact on AI Memory Demand
TurboQuant aims to cut memory usage by compressing AI model data, potentially extending the life cycle of existing memory assets. Reduced upgrade frequency could temper Micron’s revenue growth projections and shift long-term chip cycle dynamics across the semiconductor industry.
3. Political Endorsement Counters Selloff
Following the selloff, President Trump praised Micron as one of the nation’s hottest companies after meeting CEO Sanjay Mehrotra. His endorsement underscores Micron’s strategic role as a leading supplier of high-bandwidth memory used in cutting-edge AI systems.