Elon Musk said the DRAM needed in humanoid robots will exceed everything else on Earth, and Micron shares jumped more than 5% afterward. Analysts at Counterpoint Research and Goldman Sachs see rising humanoid volumes, while Micron's CEO calls physical AI a possible driver of memory demand.
Micron Technology shares surged more than 5% after Elon Musk commented on memory demand from humanoid robots. Musk, CEO of Space Exploration Technologies and Tesla, replied on X to a post by an analyst at Citrini Research.
Musk points to humanoid memory needs
Musk wrote that the DRAM needed in humanoid robots "will exceed everything else on Earth."
Counterpoint Research estimates that DRAM demand from humanoids could increase by almost 21x between 2026 and 2030. The firm notes that DRAM content in each humanoid could jump from the current 19GB to 39GB by the end of the decade.
Musk believes humanoids will need much larger DRAM. Tesla uses 72GB of memory on its AI5 chip that powers the Optimus robot, and the AI6 chip carries 144GB. Tesla cut the AI5's memory capacity in half and the AI6's by one-third to procure enough memory and reduce production costs amid the ongoing memory shortage.
Robot volumes are forecast to climb
Tesla has begun production of Optimus and intends to start shipping to customers next year. Musk predicts the company can produce a million units of its humanoids every year at the Fremont factory.
Goldman Sachs recently raised its humanoid sales forecast for 2035 by 5x. The bank estimates shipments could reach 6.5 million units in 2035, generating $138 billion in revenue.
Micron's CEO sees physical AI as a driver
Concerns about the sustainability of heavy spending on AI infrastructure have weighed on semiconductor stocks. Micron CEO Sanjay Mehrotra said on the recent earnings call that physical AI can become a significant driver of memory and storage demand by the end of this decade. He added that several physical AI customers are sampling Micron's next-generation products.
The article's author notes that Micron trades at 13 times earnings, with a forward earnings multiple of 5. The company is expected to clock a 133% increase in earnings per share in the current fiscal year, according to the source.
Source: Motley Fool
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