Chip stocks drop as TurboQuant threatens to reduce memory needs
Chip stocks dropped on Thursday after Google publicized research on TurboQuant this week; the technology was first released in 2025.
Big players like SK Hynix and Samsung Electronics saw shares fall over 6% and nearly 5% in Seoul, while Micron and Western Digital slipped more than 2% in early US trading.
TurboQuant can cut memory required to run large language models
TurboQuant can cut the memory required to run large language models by at least a factor of six, which could lower training or deployment costs, though it does not imply a guaranteed sixfold reduction in cost.
This could help with current memory shortages and lower prices for gadgets.
Analyst Shawn Kim says it might boost AI efficiency without losing performance, which sounds like a win for both tech fans and the industry.
Better tech often sparks more demand later
Even though chipmakers took a hit now, history (and something called Jevons Paradox) suggests that better tech often sparks more demand later.
So while chip stocks fell today, memory makers might actually benefit as more people adopt advanced AI down the line.