Micron Technology announced Wednesday it will discontinue its consumer-focused Crucial memory brand to concentrate on producing high-performance chips for the booming artificial intelligence sector.
Sumit Sadana, Micron’s business chief, explained the strategic pivot in a statement. “The AI-driven growth in the data center has led to a surge in demand for memory and storage,” he said. “Micron has made the difficult decision to exit the Crucial consumer business in order to improve supply and support for our larger, strategic customers in faster-growing segments.”
The move is the latest indication that the rapid expansion of AI infrastructure is creating supply chain shortages for essential components. As a handful of major companies commit hundreds of billions of dollars to build massive data centers, the global supply of advanced memory is under increasing strain.
Modern AI processors, such as those made by Nvidia and AMD, require vast amounts of specialized high-bandwidth memory (HBM). For instance, Nvidia’s current-generation GB200 chip uses 192GB of memory per graphics processor, and Google’s latest Ironwood TPU requires the same amount. AMD’s MI350 AI chip, supplied by Micron, utilizes 288GB of HBM, which the company says provides a key performance advantage. In contrast, many consumer laptops ship with just 16GB of standard memory.
Micron’s Crucial brand catered to this consumer market, selling memory modules for PC builders and laptop upgrades, as well as solid-state drives.
As the only U.S.-based supplier of HBM, Micron competes with South Korea’s SK Hynix and Samsung. Analysts have identified SK Hynix as the primary memory supplier for market leader Nvidia.
While financial details for the Crucial brand were not disclosed, Micron’s cloud memory business unit reported 213% year-over-year growth in its most recent quarter, highlighting the profitability of the enterprise market.
This strategic shift has been well-received by investors, with Micron’s shares soaring approximately 175% this year, though they dipped 3% to $232.25 on Wednesday. Citing “continued pricing momentum,” analysts at Goldman Sachs recently raised their price target on the stock to $205, anticipating strong results in the company’s upcoming quarterly report.
Regarding the impact on its workforce, a Micron spokesperson did not comment on potential layoffs. However, the company stated its intention to “reduce impact on team members due to this business decision through redeployment opportunities into existing open positions within the company.”
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