Algorithmic Advances Ease Memory Shortages, Shrinking Models to Hit HBM Demand
bookwormengr · x · 2026-08-08
The author argues that algorithmic breakthroughs, rather than just new market supply, are the real solution to memory shortages, giving buyers confidence to wait out ridiculous prices.
- Memory Market Impact: Hyperscalers and Nvidia/AMD stocks should improve as this realization hits. Citi recently cut Micron's price target, expecting DRAM and NAND price gains to decelerate over the next few quarters (partly driven by CXMT and YMTC capacity expansion).
- Slowing HBM Demand: As models shrink (e.g., OpenAI Luna, DeepSeek-V4-Flash) and techniques like WideEP are applied, aggregate HBM and bandwidth demand is reducing. Large-scale deployment domains (rack scale and beyond with CPO/BP) also make this easier.
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