Artificial intelligence (AI) has an insatiable appetite for memory bandwidth. That is the capacity to move large amounts of data quickly between memory chips and the processor. The problem is older memory chips struggle to keep pace with the ever-increasing demands of complex AI models, which require massive amounts of data to be processed simultaneously. To solve this, memory chipmakers created an innovative and powerful solution that can handle extensive data processing…All while using less energy.
It’s called High bandwidth memory (HBM) – and it’s basically a stack of memory chips that store more information and transmit data more quickly than older technology.
Bloomberg Intelligence predicts the HBM market to soar from $4 billion to $130 billion over the next five-plus years.
Now, the need for HBM will also boost demand for dynamic random-access memory, or DRAM. DRAM stores bits of data in transistors. This memory is located closer to your processor, too, so your device can easily and quickly access it for all the processes you do.
Both are key technologies for AI.
The company at the forefront of memory innovation!
Both are produced by Micron Technology (MU).
Earlier this month, Micron made a headline-grabbing announcement that it’s expanding its US semiconductor footprint with the full support of the Trump administration.
A huge $200 billion in total planned investment. This includes two new fabs in Idaho and up to four in New York. All advanced packaging facilities, and expansion of R&D for next-gen DRAM and HBM.
This investment is not only a win for Micron, but for America’s national security and supply chains. By 2030, Micron aims to manufacture 40% of its DRAM chips on US soil making chips that could end up in everything from data centres to AI-enabled weapons systems.
Micron is just one AI stock I’m bullish on – and it’s still cheap on a forward PE of 14. That’s even after rising +30% in the past month.
And now… to “Digital Assets”…
Tokenisation is the idea that we can trade many real-world financial assets via crypto tokens that offer all the same utility – digital wallet storage, fractional share rights and leverage via DeFi.
For example, imagine you wanted to send your child a stake in Berkshire Hathaway as a graduation gift, you could drop it right into their crypto wallet versus setting up an investment account (and convincing them to manage it).
Or imagine tokenising a piece of property. Many people invest regular amounts in it (sort of like a stokvel), and their ownership lets them stay in it, timeshare style.
Or imagine easily fractionalising shares of not just equities and property, but art (digital or otherwise), startups, and more.
In a tokenised world, anyone can “IPO” anything.
Why I bring up this topic today is because one of the largest and most well-known cryptocurrency companies – Coinbase – recently announced plans to tokenise equity securities, so anyone could trade stocks on its platform.
In simple terms, Coinbase will offer digital versions of stocks (tokenised equities), which would trade on blockchain networks rather than through conventional exchanges.
Doing so would allow for 24hr trading, reduce transaction costs and eliminate clearing intermediaries.
Since the announcement, Coinbase’s stock has soared 50%. So, clearly, Wall Street sees a future for tokenisation, where stocks trade like crypto. It’s an interesting and exciting concept that could disrupt traditional brokerages. If you’d like to keep on top of opportunities in this space then make sure you’re signed up to South African Investor.
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