Elon Musk Has Incredible News for Micron Stock Investors
Musk's comments suggest that the incredible demand for memory chips is sustainable over the long run.
Elon Musk's recent comments on Twitter have sent Micron Technology (MU) stock soaring, with shares up more than 5% following his post. The SpaceX and Tesla CEO highlighted the potential of dynamic random-access memory (DRAM) in humanoid robots, suggesting it could far exceed other markets. Counterpoint Research estimates that demand from humanoids could surge by nearly 21 times between 2026 and 2030, with each humanoid potentially requiring DRAM content to increase from 19GB to 39GB by the end of the decade.
However, Musk believes real-world applications will need even larger DRAM capacities. Tesla currently uses 72GB in its AI5 chip for the Optimus robot, while the AI6 chip boasts 144GB. Musk revealed that Tesla reduced memory capacities to meet production demands and projected the ability to manufacture a million humanoid units annually at the Fremont factory.
Goldman Sachs forecasts sales of humanoid robots reaching 6.5 million units by 2035, generating $138 billion in revenue. This surge in demand for memory chips in humanoids, autonomous vehicles, and other emerging niches could propel Micron stock to new heights, as the company's addressable market expands significantly in the coming years.
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