Elon Musk’s Tesla (TSLA) Pays Homage To Micron For It’s Amazing Chips
$Tesla Motors(TSLA)$
Elon Musk recently stated that Tesla had to cut the memory specifications on its upcoming robot chips because it was "the only way to get enough volume for Optimus production".
Key Comments on Micron and Memory
Cutting Optimus RAM: Musk explained that Tesla reduced memory on its chips (such as cutting the AI5 and AI6 chip memory allocations) to scale humanoid robot manufacturing. He noted this has a negligible effect on performance because memory bandwidth is a bigger constraint than total capacity.
Memory as an AI Bottleneck: Musk has highlighted that memory supply is currently AI and robotics's biggest bottleneck, noting that demand is growing at 200% annually compared to just 20% supply growth.
Public Thanks to Micron: Earlier during a quarterly earnings call, Musk publicly thanked Micron Technology for giving Tesla a "very significant allocation" of memory chips on "reasonable terms" amidst an industry-wide supply crunch and "insane" pricing.
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Nvidia (NVDA) and Micron (MU) are poised to throw their earnings weight around this reporting season.
The two companies are expected to account for more than one-third of earnings per share growth for the S&P 500 (^GSPC) for the third quarter, according to a ZeroHedge analysis. The platform assessed earnings estimates compiled by Goldman Sachs and FactSet.
What's more, the two semiconductor giants will generate more earnings growth than the bottom 490 S&P 500 companies combined. In total, the analysis found that AI infrastructure companies are expected to drive more than half of S&P 500 EPS growth for the third quarter.