Goldman Sachs issues Micron prediction ahead of earnings

Core Insights - The surge in investment for data center infrastructure to support artificial intelligence has led to a memory shortage, driving prices up and positively impacting Micron Technology's upcoming quarterly earnings report [1] - Dell has reported that rising memory prices are increasing its operational costs and creating challenges due to memory shortages [1] - Goldman Sachs has a bullish outlook on Micron, predicting results that exceed Wall Street's consensus estimates ahead of its quarterly earnings call on December 17 [4] Industry Trends - The demand for high-performance computing has intensified since the launch of ChatGPT in 2022, leading to a significant increase in AI research and development [5] - The current pace of AI research and development is comparable to the early days of the Internet, with cloud service providers investing hundreds of billions of dollars in next-generation servers equipped with AI-optimized chips [6] - The computational requirements for training AI models are rapidly increasing, with Nvidia estimating that reasoning models could require over 100 times more compute power than previous models [7]