Google’s recent breakthrough in compression technology could significantly impact the demand for memory chips, particularly those used in artificial intelligence (AI) applications. The new algorithm, dubbed TurboQuant, promises to reduce the need for some of these scarce memory chips by up to 83%. This development is concerning for companies like Micron Technology and Sandisk Corporation, which rely heavily on memory chip sales.
The algorithm’s performance has been touted as a “stunning claim,” with claims that it reduces memory usage by at least 6x and delivers up to 8x speedup without sacrificing accuracy. If successful, this could lead to lower prices for memory chips, negatively affecting Micron and Sandisk’s revenue.
However, some experts suggest that falling memory prices might actually increase demand for AI applications, leading to higher overall memory usage and sales. It remains to be seen how Google’s TurboQuant will play out in the market.
As with any major development in the field of AI, investors should exercise caution and maintain a well-diversified portfolio to mitigate potential risks. A knee-jerk reaction to news may lead to missed opportunities, so it’s essential to keep an eye on future developments and adjust strategies accordingly.
Source: https://www.fool.com/investing/2026/03/30/google-just-announced-really-bad-news-for-micron-a