Google's New Compression Technology May Impact Memory Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 26 2026
0mins
Should l Buy GOOG?
Source: Newsfilter
- Memory Demand Concerns: Google's newly unveiled TurboQuant compression method claims to reduce the memory required for large language models by six times, raising investor fears about a potential slowdown in memory chip demand, which negatively impacted shares of SK Hynix and Samsung.
- Market Reaction: On Thursday, shares of SK Hynix and Samsung fell by 6% and nearly 5%, respectively, while Japanese company Kioxia dropped nearly 6%, reflecting market panic over declining memory demand.
- Analyst Insights: Despite the sell-off, analysts suggest that the moves are largely profit-taking, and Google's research could lead to more advanced AI developments that will ultimately require more memory chips to support increasingly powerful models.
- Long-Term Market Outlook: Although memory stocks are under pressure in the short term, strong demand coupled with supply shortages has driven memory prices to unprecedented levels, with Samsung, SK Hynix, and Micron seeing stock increases of nearly 200% and over 300% in the past year.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 294.900
Low
255.00
Averages
336.08
High
400.00
Current: 294.900
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
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.
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