Western Digital Corporation (NASDAQ:WDC) is one of the Unstoppable Technology Stocks to Buy Now. According to a March 26 report by CNBC, memory stocks saw a sell-off after Google unveiled its TurboQuant on Tuesday, March 24.
Western Digital Corporation (NASDAQ:WDC) has fallen around 17% since Tuesday. The report noted that TurboQuant is a new compression method introduced by Google, which is said to reduce the amount of memory required by large language models by approximately six times. CNBC noted that the new method reduced the amount of memory required by reducing the key value cache.
Following the release, major memory stocks including SK Hynix and Samsung witnessed a 6% and 5% drop in share price, respectively. The sell-off reflects investor fears that such techniques can lower the demand for memory chips, which are heavily used by hyperscalers to train AI and large language models. According to CNBC, Ray Wang, a memory analyst at SemiAnalysis, noted that the launch of TurboQuant does not necessarily mean that AI would require fewer memory chips. He elaborated that this development is focused on improving model effectiveness and hardware performance.
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