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What Is High Bandwidth Memory?

High Bandwidth Memory (HBM), in simple terms, is a certain number of conventional DRAM (direct random-access memory) chips stacked together to achieve greater performance and efficiency. It was first developed by SK Hynix a decade ago for use in video games and only recently came into its own with the advent of generative AI, which requires components that can handle massive amounts of data without lag time.

What Is HBM’s Market Size and Expected Growth Rate?

According to Mordor Intelligence, the HBM market is currently US$3.17B and is forecast to grow at a CAGR of 25.86% between now and 2030 to US$10.02B..

What is HBM’s Global Market Share By Company and Region?

For now, SK Hynix is the clear leader, with more than half the global market share for HBM; but compatriot Samsung Electronics (SSNLF) and Micron Technology (MU) of the U.S. are racing to catch up, competing not only on technology but on price and other conditions. That being said,

• SK Hynix is forecast to continue to be the HBM leader in 2025, with a market share of over 52%,
• Samsung at 42.4%,
• and Micron at a little over 5% of the market.
• Other companies in the field include Intel (INTC), Fujitsu (FJTSF) and Toshiba Corporation (TOSBF). SK Hynix’s shares are traded on the Korea Exchange, and its Global Depository shares are listed on the Luxemburg Stock Exchange.

The three big players are betting big on HBM because it commands a significant price premium, selling for about five times the price of DDR5, the most advanced type of DRAM used in computers. HBM’s share could account for more than 30% of the total DRAM market by value this year thanks to growing AI computing demand.

North America is expected to have the largest share in the HBM market primarily due to the major growth in high-performance computing (HPC) applications as a result of the increasing market for AI, machine learning, and cloud computing that require high bandwidth memory solutions for fast data processing and the rapid advancement of technology and increasing usage of edge technologies in cars all of which supports the growth of high-bandwidth memory.

How Did Micron Technologies' Stock Perform In May?

MU was UP 22.8% in May putting it UP 12.2% YTD

Why Did MU's Stock Go Up So Much In May?

Micron Technology’s stock saw a pronounced surge in May driven by the following intertwined factors.

1. Upgrades from influential analysts:
   • UBS Group raised its price target significantly—from around $92 to about $120—which sent a strong signal to the market, prompting investors to view the chipmaker more favorably.
2. Heightened market optimism around artificial intelligence (AI): 
   • The AI boom has been fueling demand for cutting-edge memory and semiconductor technologies, areas where Micron is a major player and Micron’s latest product, HBM3E, meets these demanding requirements and is already being integrated into NVIDIA’s flagship AI systems.
3. Improved earnings outlook and revenue expectations:
   • ​​​​​​​Anticipation of strong upcoming earnings reports, along with revised forecasts that indicated robust revenue growth and profitability, reassured investors about Micron’s near-term potential.

Conclusion

This combination of factors—analyst upgrades, booming demand from the AI sector, and encouraging financial projections—created an environment where the stock could flourish, culminating in the impressive gains observed during May.

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