TurboQuant's Impact on Memory Stocks: Understanding Jevons' Paradox and the Market's Misjudgment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 26 2026
0mins
Should l Buy MU?
Source: Barron's
- Impact on Memory Stocks: Highflying memory stocks like Micron and SanDisk have experienced a decline this week.
- Reason for Decline: The drop may be linked to the introduction of TurboQuant, a new compression algorithm discussed in a recent Google research paper.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 457.230
Low
235.00
Averages
336.12
High
500.00
Current: 457.230
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Micron Technology Reports 196% Revenue Surge in Q2 2026
- Significant Revenue Growth: Micron Technology reported Q2 2026 revenue of $23.86 billion, reflecting a remarkable 196% year-over-year increase, underscoring the company's robust demand in the high-bandwidth memory market and its expanding market share.
- Stable Market Share: Micron holds an estimated 21% to 24% share of the high-bandwidth memory market, trailing SK Hynix but ahead of Samsung, indicating its critical position in meeting the surging AI-driven memory demand.
- Strong Margin Performance: The company achieved a non-GAAP gross margin of 74.9%, demonstrating strong pricing power and margin durability amid high demand and limited supply, further solidifying its market leadership.
- Future Growth Potential: The high-bandwidth memory market is projected to grow from $35 billion in 2025 to $100 billion by 2028, with a 40% CAGR, providing Micron with sustained growth momentum, particularly as AI infrastructure continues to expand.
See More
SanDisk Shares Slip Amid Market Pressure and Tensions
- Stock Price Movement: SanDisk shares slipped 1.5% in early Monday trading, primarily influenced by escalating tensions between the U.S. and Iran, despite a staggering 2,500% increase since its split from Western Digital in February last year.
- Nasdaq Inclusion Impact: SanDisk is set to officially join the Nasdaq 100 index on Monday, with an 8% rise since the announcement, which is expected to attract institutional buying, potentially leading to a surge in trading volume and market volatility.
- Memory Chip Supercycle: The memory chip sector is experiencing a 'supercycle' driven by surging demand from AI data centers, with analysts predicting strong demand for the next few years, reflected in quarterly earnings from major players like Micron, Seagate, and Western Digital.
- Retail Sentiment: While retail sentiment for SNDK on Stocktwits remains 'extremely bullish', some retail traders express caution regarding Monday's price movement, suggesting it may fluctuate between 800 and 850 until the upcoming earnings report.
See More
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- Market Recovery: The S&P 500 index reached a new record high on April 15 after a 9% decline, reflecting a rebound in investor sentiment, particularly following the U.S.-Iran ceasefire agreement that alleviated fears of a global energy shortage.
- Oil Price Volatility Risk: Despite the market recovery, Iran's recent restrictions on commercial vessels in the Strait of Hormuz could lead to another spike in oil prices, potentially pressuring corporate earnings and necessitating caution from investors regarding short-term market fluctuations.
- Investment Strategy Adjustment: With a low expense ratio of 0.03%, the Vanguard S&P 500 ETF may yield modest returns of 5% or less over the next decade at current highs, prompting a recommendation for investors to adopt a strategy of regular small investments to mitigate risks of market corrections.
- Long-Term Return Potential: While the S&P 500 has delivered a compound annual return of 10.5% since 1957, the current price-to-earnings ratio exceeding 20 times necessitates careful evaluation of future investment opportunities to avoid significant losses from large investments at market peaks.
See More
S&P 500 Hits Record High Amid Ceasefire Agreement
- Market Sentiment Recovery: Following the ceasefire agreement between the U.S. and Iran on April 8, the S&P 500 reached a record high on April 15, indicating a strong rebound from a recent 9% peak-to-trough decline and a restoration of investor confidence.
- Strait of Hormuz Significance: This waterway handles 25% of the world's seaborne oil supply daily, and its reopening alleviated fears of a global energy shortage, although Iran's recent restrictions on commercial vessels create uncertainty for future developments.
- Tech Sector Dominance: The top three companies in the S&P 500, Nvidia, Apple, and Microsoft, represent a combined market cap of $12 trillion, highlighting the significant role of the technology sector in the index and its potential for future growth.
- Investment Strategy Adjustment: With the S&P 500 currently trading at over 20 times forward earnings and projected annual returns potentially below 5% over the next decade, investors are advised to consider dollar-cost averaging through smaller, consistent investments rather than making large lump-sum purchases at record highs.
See More
Nvidia vs. Micron: AI Investment Outlook
- Stock Performance Comparison: Since the AI build-out began in 2023, Nvidia's stock has surged 1,240%, yet it has only risen 9% over the past six months, indicating a recent stagnation; in contrast, Micron has seen a 150% increase in the same period and an 830% rise since 2023, showcasing stronger market performance.
- Market Demand Analysis: Micron noted in its latest earnings call that it can only meet 50% to 66% of medium-term demand, highlighting the robust demand for memory chips, which is expected to drive Micron's continued growth despite its products being relatively commoditized.
- Revenue Growth Rate: Micron's revenue has skyrocketed by 150% over the past nine months, increasing from $13.6 billion to $23.9 billion, with an estimated $33.5 billion for the next quarter, significantly outpacing Nvidia's 73% year-over-year growth rate and demonstrating its strong performance in the memory market.
- Valuation Discrepancy: Although both companies are growing rapidly, Micron's stock trades at only a third of Nvidia's price, reflecting the cyclical nature of Micron's business, which may continue to grow rapidly for years, making it a more attractive investment option.
See More
Nvidia vs Micron: Growth Comparison
- Nvidia Stock Performance: Since the AI build-out began in 2023, Nvidia's stock has surged 1,240%, although it has only risen 9% over the past six months, indicating short-term volatility while maintaining strong long-term growth potential.
- Micron's Strong Growth: Amid a memory chip shortage, Micron's stock has increased by 150% over the past six months and 830% since 2023, reflecting robust demand and profitability in the memory market.
- Significant Revenue Increase: Micron's quarterly revenue jumped from $13.6 billion to $23.9 billion, with an estimated $33.5 billion next quarter, achieving a remarkable 150% growth in nine months, significantly outpacing Nvidia's growth rate.
- Investment Value Analysis: Although Micron's stock trades at a third of Nvidia's price, its rapid growth may continue for years due to the cyclical nature of the memory market, making it a better short-term investment, while Nvidia remains a strong long-term demand player.
See More
Micron Technology Reports 196% Revenue Surge in Q2 2026
- Significant Revenue Growth: Micron Technology reported Q2 2026 revenue of $23.86 billion, reflecting a remarkable 196% year-over-year increase, underscoring the company's robust demand in the high-bandwidth memory market and its expanding market share.
- Stable Market Share: Micron holds an estimated 21% to 24% share of the high-bandwidth memory market, trailing SK Hynix but ahead of Samsung, indicating its critical position in meeting the surging AI-driven memory demand.
- Strong Margin Performance: The company achieved a non-GAAP gross margin of 74.9%, demonstrating strong pricing power and margin durability amid high demand and limited supply, further solidifying its market leadership.
- Future Growth Potential: The high-bandwidth memory market is projected to grow from $35 billion in 2025 to $100 billion by 2028, with a 40% CAGR, providing Micron with sustained growth momentum, particularly as AI infrastructure continues to expand.
See More
SanDisk Shares Slip Amid Market Pressure and Tensions
- Stock Price Movement: SanDisk shares slipped 1.5% in early Monday trading, primarily influenced by escalating tensions between the U.S. and Iran, despite a staggering 2,500% increase since its split from Western Digital in February last year.
- Nasdaq Inclusion Impact: SanDisk is set to officially join the Nasdaq 100 index on Monday, with an 8% rise since the announcement, which is expected to attract institutional buying, potentially leading to a surge in trading volume and market volatility.
- Memory Chip Supercycle: The memory chip sector is experiencing a 'supercycle' driven by surging demand from AI data centers, with analysts predicting strong demand for the next few years, reflected in quarterly earnings from major players like Micron, Seagate, and Western Digital.
- Retail Sentiment: While retail sentiment for SNDK on Stocktwits remains 'extremely bullish', some retail traders express caution regarding Monday's price movement, suggesting it may fluctuate between 800 and 850 until the upcoming earnings report.
See More
S&P 500 Index Hits Record High Amid Market Recovery
- Market Recovery: The S&P 500 index reached a new record high on April 15 after a 9% decline, reflecting a rebound in investor sentiment, particularly following the U.S.-Iran ceasefire agreement that alleviated fears of a global energy shortage.
- Oil Price Volatility Risk: Despite the market recovery, Iran's recent restrictions on commercial vessels in the Strait of Hormuz could lead to another spike in oil prices, potentially pressuring corporate earnings and necessitating caution from investors regarding short-term market fluctuations.
- Investment Strategy Adjustment: With a low expense ratio of 0.03%, the Vanguard S&P 500 ETF may yield modest returns of 5% or less over the next decade at current highs, prompting a recommendation for investors to adopt a strategy of regular small investments to mitigate risks of market corrections.
- Long-Term Return Potential: While the S&P 500 has delivered a compound annual return of 10.5% since 1957, the current price-to-earnings ratio exceeding 20 times necessitates careful evaluation of future investment opportunities to avoid significant losses from large investments at market peaks.
See More
S&P 500 Hits Record High Amid Ceasefire Agreement
- Market Sentiment Recovery: Following the ceasefire agreement between the U.S. and Iran on April 8, the S&P 500 reached a record high on April 15, indicating a strong rebound from a recent 9% peak-to-trough decline and a restoration of investor confidence.
- Strait of Hormuz Significance: This waterway handles 25% of the world's seaborne oil supply daily, and its reopening alleviated fears of a global energy shortage, although Iran's recent restrictions on commercial vessels create uncertainty for future developments.
- Tech Sector Dominance: The top three companies in the S&P 500, Nvidia, Apple, and Microsoft, represent a combined market cap of $12 trillion, highlighting the significant role of the technology sector in the index and its potential for future growth.
- Investment Strategy Adjustment: With the S&P 500 currently trading at over 20 times forward earnings and projected annual returns potentially below 5% over the next decade, investors are advised to consider dollar-cost averaging through smaller, consistent investments rather than making large lump-sum purchases at record highs.
See More
Nvidia vs. Micron: AI Investment Outlook
- Stock Performance Comparison: Since the AI build-out began in 2023, Nvidia's stock has surged 1,240%, yet it has only risen 9% over the past six months, indicating a recent stagnation; in contrast, Micron has seen a 150% increase in the same period and an 830% rise since 2023, showcasing stronger market performance.
- Market Demand Analysis: Micron noted in its latest earnings call that it can only meet 50% to 66% of medium-term demand, highlighting the robust demand for memory chips, which is expected to drive Micron's continued growth despite its products being relatively commoditized.
- Revenue Growth Rate: Micron's revenue has skyrocketed by 150% over the past nine months, increasing from $13.6 billion to $23.9 billion, with an estimated $33.5 billion for the next quarter, significantly outpacing Nvidia's 73% year-over-year growth rate and demonstrating its strong performance in the memory market.
- Valuation Discrepancy: Although both companies are growing rapidly, Micron's stock trades at only a third of Nvidia's price, reflecting the cyclical nature of Micron's business, which may continue to grow rapidly for years, making it a more attractive investment option.
See More
Nvidia vs Micron: Growth Comparison
- Nvidia Stock Performance: Since the AI build-out began in 2023, Nvidia's stock has surged 1,240%, although it has only risen 9% over the past six months, indicating short-term volatility while maintaining strong long-term growth potential.
- Micron's Strong Growth: Amid a memory chip shortage, Micron's stock has increased by 150% over the past six months and 830% since 2023, reflecting robust demand and profitability in the memory market.
- Significant Revenue Increase: Micron's quarterly revenue jumped from $13.6 billion to $23.9 billion, with an estimated $33.5 billion next quarter, achieving a remarkable 150% growth in nine months, significantly outpacing Nvidia's growth rate.
- Investment Value Analysis: Although Micron's stock trades at a third of Nvidia's price, its rapid growth may continue for years due to the cyclical nature of the memory market, making it a better short-term investment, while Nvidia remains a strong long-term demand player.
See More
