Goldman Sachs has made a noteworthy prediction concerning the surge in total addressable market for high-bandwidth memory (HBM) chips, attributing the growth to the demand for Nvidia's latest Blackwell GPU chips. The bank's analysts, headed by Giuni Lee, believe that the HBM market will skyrocket from $2.3 billion in 2022 to a massive $23 billion by 2026. This projection points to a flourishing market scenario where SK Hynix, Samsung Electronics, and Micron Technology are highlighted as the principal beneficiaries poised for gains from this expected boom.
The driving force behind Goldman Sachs' optimistic projection lies in the expanding need for AI servers and the rising memory chip density per GPU. However, it's worth noting that there are challenges that major suppliers will encounter, such as larger chip sizes and lower production yields for HBM chips compared to traditional DRAM memory chips, leading to a probable tight supply in the foreseeable future. Amidst these projections, Nvidia's introduction of new AI chips has come at a time when the company's stock is drawing significant attention, experiencing a surge in the wake of increased interest in artificial intelligence sparked by OpenAI's ChatGPT. Despite the growth, concerns persist about the sustainability of this uptrend, with some suggesting it may be rooted in speculative behavior.
Investor sentiment is currently riding high, reaching a two-year peak, amidst speculation of the Great Rotation potentially underway. The future trajectory of technology and the increasing importance of computing power have been focal points of discussion, with experts hinting that "compute" might supersede fiat or cryptocurrencies as the "currency of the future.