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Sandisk, Micron dive as Google Research unveils AI algorithm to reduce memory demands

This might be an unfortunately memorable day for the memory trade.

Memory stocks Sandisk, Micron, Seagate Technology Holdings, and Western Digital sank Wednesday after Alphabet’s Google Research group published details of a new algorithm known as TurboQuant.

Per Google’s extremely technical release, TurboQuant is an algorithm that allows for a data technique called “vector quantization to be used while addressing the issue of so-called “memory overhead,” allowing data in AI models to be compressed without reductions in accuracy or requiring retraining, while reducing the memory storage requirements at data centers.

And that outlook seems to be enough for the market to be sending memory stocks down for the day.

Per Google’s extremely technical release, TurboQuant is an algorithm that allows for a data technique called “vector quantization to be used while addressing the issue of so-called “memory overhead,” allowing data in AI models to be compressed without reductions in accuracy or requiring retraining, while reducing the memory storage requirements at data centers.

And that outlook seems to be enough for the market to be sending memory stocks down for the day.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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