Micron Technology (NASDAQ:MU) shares are up more than 5% Monday after the company announced it has started volume production of its HBM3E (High Bandwidth Memory 3E) solution.
Micron's 24GB 8H HBM3E product is set to be part of the NVIDIA H200 Tensor Core GPUs, which will begin shipping in the second quarter of 2024.
According to Micron, the HBM3E solution provides can support AI growth via its superior performance, increased efficiency, and scalability.
"AI workloads are heavily reliant on memory bandwidth and capacity, and Micron is very well-positioned to support the significant AI growth ahead through our industry-leading HBM3E and HBM4 roadmap, as well as our full portfolio of DRAM and NAND solutions for AI applications," explained Sumit Sadana, executive vice president and chief business officer at Micron Technology.
Reacting to the news, analysts at Goldman Sachs reiterated a Buy rating and $103 price target on MU shares, telling investors that although an increase in Micron's competitive presence in HBM had already been a part of its investment thesis, they "perceive today's confirmation positively."