By Adam Spatacco
Publication Date: 2026-04-07 21:03:00
In late March, Alphabet unveiled a new software product called TurboQuant. At a high level, TurboQuant dramatically compresses memory footprints in large language models during inference.
It didn’t take long for headlines to circulate and cause shares of Micron Technology (MU 0.18%) to plunge. In large part, the sell-off was tied to Micron’s relationship with Nvidia (NVDA +0.07%) since its high-bandwidth memory (HBM) solutions help power Nvidia’s graphics processing units (GPUs).
Data by YCharts.
While the perception around Micron’s vulnerability was understandable, I think the panic-selling was premature. Nvidia’s artificial intelligence (AI) chips still require massive amounts of specialized memory, and TurboQuant does very little to change Micron’s position in the equation.
Image source: Micron Technology.
What is causing Micron stock to plummet?
AI models are used to store long conversations and process extended inputs to perform complex tasks. Behind the scenes, enormous volumes of memory and storage sit atop the GPUs actually processing these applications.
At its core, the TurboQuant algorithm minimizes the space required to store memory while also preserving model accuracy. To the casual observer, TurboQuant looks like a software shortcut that allows AI to run on less silicon. Hence, memory stocks across the board cratered on the narrative that future AI workloads will need fewer chips.
If the AI hardware supercycle that once fueled Micron’s ascent suddenly…
