Micron Commences Mass Production of HBM3E

On February 26, Micron Technology announced the commencement of mass production for HBM3E, leading to a more than 4% pre-market increase in the company's stock price on Monday, the 26th. The 24GB 8H HBM3E from Micron is set to be integrated into the NVIDIA H200 Tensor Core GPU, with shipments expected to commence in the second quarter of 2024.

Micron emphasizes that the power consumption of HBM3E (High Bandwidth Memory 3E) is 30% lower than competing products, addressing the rising demand for chips powering generative AI applications.

Sumit Sadana, Executive Vice President and Chief Business Officer of Micron Technology, expressed, "Micron Technology attains a triple victory with this HBM3E milestone: leading time to market, top-tier industry performance, and a differentiated energy efficiency profile." He added, "AI workloads heavily rely on memory bandwidth and capacity, and Micron strategically positions itself to support the significant growth in future AI with our industry-leading HBM3E and HBM4 roadmap, along with our comprehensive DRAM and NAND solutions tailored for AI applications."

NVIDIA plans to incorporate this chip in its next-generation H200 Graphics Processing Unit (GPU), expected to ship in the second quarter, surpassing the current H100 chip and contributing to a substantial increase in revenue for the chip design company.

The demand for High Bandwidth Memory (HBM) chips for AI, led by NVIDIA supplier SK Hynix, has sparked investor optimism about Micron's resilience amid other market slow recoveries.

HBM stands out as one of Micron Technology's most profitable products, partly due to the technological complexity involved in its construction. The company projects HBM revenue to reach "hundreds of millions" of dollars in the 2024 fiscal year, with continued growth anticipated in 2025.