BOISE, Idaho - Micron Technology, Inc. (NASDAQ:MU) has introduced its new multiplexed rank dual inline memory module (MRDIMM), designed to power artificial intelligence (AI) and high-performance computing (HPC) applications with increased capacity and reduced latency.
The company announced today that it is currently offering samples of these MRDIMMs, which are anticipated to support memory-intensive tasks more efficiently than existing solutions.
The MRDIMMs, compatible with Intel (NASDAQ:INTC)® Xeon® 6 processors, claim to surpass traditional TSV RDIMMs by providing higher bandwidth and larger capacities, up to 256GB per DIMM slot, while also achieving up to 40% lower latency. These improvements are expected to accelerate virtualized multi-tenant, HPC, and AI data center workloads.
Micron's MRDIMMs are designed to deliver enhanced performance per watt, contributing to energy savings and maintaining the same reliability and serviceability as RDIMMs. The company emphasizes seamless integration into current server infrastructures and compatibility with future compute platforms.
The DDR5 technology utilized in MRDIMMs is said to offer a 39% increase in effective memory bandwidth and more than 15% better bus efficiency compared to RDIMMs. Moreover, the thermal design of the tall form factor (TFF) modules reportedly reduces DRAM temperatures by up to 20 degrees Celsius, which could lead to more efficient cooling in data centers.
Micron's 256GB TFF MRDIMMs are engineered using 32Gb DRAM die, which allows for the same power envelope as 128GB TFF MRDIMMs that use 16Gb die. This configuration is expected to yield a 35% performance improvement over similar-capacity TSV RDIMMs at maximum data rates.
Industry collaboration has been highlighted as a key factor in the development of MRDIMMs, with Intel and Lenovo executives expressing support for the new memory modules. Micron anticipates that MRDIMMs will begin shipping in volume in the latter half of 2024, with future generations continuing to offer significant bandwidth improvements.
The announcement is based on a press release statement from Micron Technology, Inc. and provides an overview of the new MRDIMM product line and its potential benefits for data center workloads.
In other recent news, Micron Technology has seen a series of significant developments. KeyBanc increased the company's share price target to $165, maintaining an Overweight rating. This decision comes amid competitor Samsung (KS:005930)'s struggles with its HBM3e product, potentially allowing Micron to gain a larger market share in this advanced memory technology segment. Furthermore, the introduction of HBM4 is set to create additional opportunities for Micron.
The company reported a third-quarter revenue of $6.81 billion, surpassing estimates, and a fourth-quarter revenue projection of $7.6 billion, driven by sales of its high-bandwidth memory chips. Micron also announced plans to increase its capital expenditure in the coming year, with about half of this investment aimed at expanding production capacity through the construction of new fabrication plants.
Analyst firms including TD Cowen, Piper Sandler, UBS, and Barclays have adjusted their price targets for Micron, citing robust capital expenditure plans and promising revenue projections. BofA Securities and CFRA maintained their Buy ratings on Micron, while UBS revised its earnings per share estimates for the company for 2025 and 2026, but maintained its Buy rating. These are the recent developments for Micron Technology.
InvestingPro Insights
Micron Technology, Inc. (NASDAQ:MU) has recently showcased its innovative MRDIMM technology, which is poised to enhance AI and HPC applications by providing higher capacity and reduced latency. As investors consider the potential market impact of MRDIMMs, it's essential to look at the company's financial health and market position through the lens of InvestingPro metrics and tips.
According to InvestingPro Data, Micron currently holds a substantial market capitalization of $145.11B USD, reflecting a significant presence in the semiconductor sector. Despite a negative P/E Ratio of -93.59, the company has demonstrated a robust revenue growth of 17.6% over the last twelve months as of Q3 2024. This growth trajectory is further underscored by a remarkable six-month price total return of 54.96%, indicating strong investor confidence in Micron's market performance.
An InvestingPro Tip highlights that Micron has raised its dividend for three consecutive years, suggesting a commitment to providing shareholder value. Furthermore, analysts have revised their earnings upwards for the upcoming period, signaling optimism about the company's future profitability. This is particularly relevant as Micron ventures into the MRDIMM market, which could lead to increased sales and further growth.
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