【AI + Memory】Google unveils new TurboQuant technology, disrupting storage and chip stocks. Morgan Stanley describes it as "another DeepSeek moment." Analysis: Beneficial for cloud service giants.

Google (NASDAQ: GOOGL) has released a highly efficient AI memory compression algorithm, causing chip stocks to decline. Memory stocks Micron Technology (NASDAQ: MU) and Sandisk (NASDAQ: SNDK) fell nearly 7% and 11% respectively, while GPU chip stocks Nvidia (NASDAQ: NVDA) and AMD (NASDAQ: AMD) dropped 4% and over 7%.

A stock analyst stated in our video program that the previous AI boom had driven storage demand, boosting related stock prices significantly. With the emergence of new technological breakthroughs, adjustments are normal, and in the short term, there may be further corrections, as the new technology drastically compresses the memory capacity required for AI large models and improves efficiency, reducing demand for traditional chips. In the long run, lower-end products will be pressured, but there will still be a demand for high-performance, high-tech chips.

The analyst pointed out that Micron’s stock price has recently weakened technically. If it adjusts to a reasonable range around $330, it may be worth considering gradual accumulation in the medium to long term. On the other hand, large tech companies related to cloud services and AI models, including Google, Amazon (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT), are expected to benefit from the new technological breakthroughs. With solid funding, they are suitable for medium to long-term holding, and investors may consider accumulating during stock price corrections.

Google introduced a new compression technology called “TurboQuant,” claiming that this algorithm can achieve a 6x memory compression during the operation of large language models (LLM) and an 8x performance improvement, attracting attention in the tech community and seen as a breakthrough technology that can solve the high computation costs and insufficient memory of AI large models.

Morgan Stanley stated that this is not a sixfold reduction in storage or overall hardware demand, but rather a substantial increase in individual GPU throughput. The emergence of “TurboQuant” is considered “another DeepSeek moment,” reshaping the cost curve of AI deployment. The biggest winners are cloud service giants and large model platforms like Google and Microsoft, as the dramatic drop in inference costs will directly enhance profit margins. Additionally, terminal devices that were previously constrained by the “memory bottleneck” are also expected to benefit, such as Apple (NASDAQ: AAPL), making the new technology a significant advantage for Apple’s AI strategy.

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