Key points
- NAND flash memory is the dominant data storage technology when it comes to AI thanks to its fast speeds and growing capacity as prices continue to drop.
- MRAM and PCM are challenging competitors that have superior technology, but infrastructure and costs prevent them from widespread widespread adoption.
- 3D XPoint is a cautionary tale that illustrates how superior technology can still fail in the face of a deeply entrenched incumbent.
- 5 titles we prefer to NVIDIA
Artificial intelligence (AI) applications and platforms are growing like weeds. The arms race for AI superiority continues to be waged among chipmakers looking to break away Nvidia Co. NASDAQ:NVDA dominance in the GPU segment Micron Technology Inc. NASDAQ:MU Predominance of NAND flash memory in memory chips for data storage. The computer and technology industry is constantly evolving, and today’s winners can become yesterday’s losers in an instant, no pun intended. Here are 3 upcoming disruptive technologies to challenge the dominance of NAND flash memory in AI.
Magnetoresistive RAM (MRAM)
Everspin Technologies
(As of 04/23/2024 ET)
- 52 week interval
- $6.20
▼
$10.50
- P/E ratio
- 5.55pm
- Price target
- $12.00
This memory technology is non-volatile (does not lose data when power is interrupted), has high radiation resistance, and can be used in extreme temperature conditions. It is sometimes called spin-transfer torque magnetoresistive RAM (STT-MRAM). It uses magnetic tunnel junctions (MTJs) to store data by manipulating the spins of electrons.
This results in extremely high read/write speeds with higher endurance than NAND. It’s a combination of storage density paired with SRAM speed, power efficiency, and non-volatile features. The disadvantage is that storage density is low and production costs are high. In addition to AI applications, it is also ideal for automotive, military and industrial applications due to its ability to operate at extreme temperatures and its tamper-evident nature.
While MRAM has yet to reach its potential, Everspin Technologies Inc. NASDAQ: MRAM is considered a leader in the segment. They collaborated with GLOBAL FOUNDRY Inc. NASDAQ: GFS to integrate MRAM into 22FDX technology.
Phase Change Memory (PCM)
International Business Machines
(As of 04/23/2024 ET)
- 52 week interval
- $120.55
▼
$199.18
- Dividend yield
- 3.64%
- P/E ratio
- 10.41pm
- Price target
- $177.23
This non-volatile technology stores data by switching the material from amorphous to crystalline at the nanometer level. The stored data can be stored and stored for 10 years at room temperature. It’s as fast as DRAM. It has lower power consumption than NAND. However, it has a lower storage density and can suffer from strength drift, where the amorphous state drifts more than the crystalline state. International Business Machines New York Stock Exchange: IBM is working to advance technology that integrates PCM-based cores with its digital computing processors.
3D XPoint Memory (3DXP)
(As of 04/23/2024 ET)
- 52 week interval
- $26.85
▼
$51.28
- Dividend yield
- 1.46%
- P/E ratio
- 87.90
- Price target
- $42.38
This type of storage memory was developed by Intel Co. NASDAQ: INTC and Micron technology. It uses a 3D crossbar with resistance-switching materials. Intel’s Optane SSDs use 3D XPoint technology which is significantly faster than NAND flash memory in access and transfer times.
The speed advantage comes from addressing individual cells rather than entire blocks to perform write operations rather than having to perform an entire sequence of read-modify-write operations. The technology has very low latency and very high endurance concurrent read and write operations with performance degradation. 3D XPoint has bridged the gap between NAND and RAM. Unfortunately, it wasn’t enough.
The technology had limited availability, adoption, and high costs. Intel has announced the discontinuation of its Optane SSD DC P4800X drives. Despite being superior to NAND, it had limited market adoption as the chips were not competitive with NAND in terms of price and had an established infrastructure. Intel has resumed focusing on the development of its core processor business.
It’s hard to knock the king off the mountain
3D XPoint may be a cautionary tale of a superior technology that could not gain major adoption due to NAND Flash’s high costs and dominant dominance. Companies are unlikely to move away from an established infrastructure when something is the standard. Challengers will continue to come, but the moat is wide and deep for NAND since it is the standard, and companies are reluctant to move away from the standard in any technology.
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