3 Technologies to Challenge NAND Flash Dominance in AI

Development of artificial intelligence,

Key Points

  • NAND flash memory is the dominant data storage technology when it comes to AI due to its fast speeds and increasing capacity as prices continue to come down.
  • MRAM and PCM are challenging competitors that have superior technology, but infrastructure and costs prevent them from wide mainstream adoption.
  • 3D XPoint is a cautionary tale that illustrates how superior technology can still fail when up against a deeply entrenched incumbent leader.
  • 5 stocks we like better than NVIDIA

Artificial intelligence (AI) applications and platforms are growing like weeds. The arms race for AI superiority continues to be waged between the chip makers trying to chip away at Nvidia Co. NASDAQ: NVDA dominance in the GPU segment to Micron Technology Inc. NASDAQ: MU NAND flash memory dominance in memory chips for data storage. The computer and technology sector is always evolving, and today’s winners can be yesterday’s losers in a flash, no pun intended. Here are 3 upcoming disruptive technologies to challenge NAND flash memory dominance in AI.

Magnetoresistive RAM (MRAM)

Everspin Technologies Today

Everspin Technologies, Inc. stock logo
MRAMMRAM 90-day performance
Everspin Technologies
$6.17
-0.04 (-0.64%)
(As of 05/17/2024 08:54 PM ET)
52-Week Range
$6.03
$10.50
P/E Ratio
16.68
Price Target
$9.00

This memory technology is non-volatile (doesn’t lose data when power is shut off), has high radiation resistance, and can be operated in extreme temperature conditions. It’s sometimes referred to as Spin-Transfer Torque Magnetoresistive RAM (STT-MRAM). It utilizes magnetic tunnel junctions (MTJs) to store data by manipulating the electron spins.

This results in extremely fast read/write speeds with higher endurance than NAND. It's a combination of storage density coupled with SRAM speed, power efficiency, and non-volatile features. The downside is that the storage density is low, and manufacturing costs are high. In addition to AI applications, it is also ideal for automotive, military and industrial applications due to its ability to operate in extreme temperatures and tamper-resistant nature.

While MRAM has yet to reach its potential, Everspin Technologies Inc. NASDAQ: MRAM is considered the leader in the segment. They’ve partnered with GLOBAL FOUNDRIES Inc. NASDAQ: GFS to integrate MRAM into 22FDX technology.


Phase-Change Memory (PCM)

International Business Machines Today

International Business Machines Co. stock logo
IBMIBM 90-day performance
International Business Machines
$169.03
+0.06 (+0.04%)
(As of 05/17/2024 08:53 PM ET)
52-Week Range
$125.01
$199.18
Dividend Yield
3.95%
P/E Ratio
19.14
Price Target
$181.29

This non-volatile technology stores data by switching material between amorphous and crystalline states on a nano level. The stored data can be retained and stored for 10 years at room temperature. It's as fast as a DRAM. It has lower power consumption than NAND. However, it has lower storage density and can suffer from resistance drift, where the amorphous state drifts more than the crystalline state. International Business Machines NYSE: IBM is working to progress the technology integrating PCM-based cores with its digital computing processors. 

3D XPoint Memory (3DXP)

Intel Today

Intel Co. stock logo
INTCINTC 90-day performance
Intel
$31.83
-0.20 (-0.62%)
(As of 05/17/2024 08:53 PM ET)
52-Week Range
$26.85
$51.28
Dividend Yield
1.57%
P/E Ratio
33.16
Price Target
$39.58

This type of storage memory is being developed by Intel Co. NASDAQ: INTC and Micron Technology. It utilizes a 3D crossbar with resistance-switching materials. Intel's Optane SSDs use 3D XPoint technology which is significantly faster than NAND flash memory in access and transfer times.

The speed advantage comes from addressing single cells rather than whole blocks to perform write operations rather than having to perform a whole sequence of read-modify-write operations. The technology has very low latency and simultaneous read and write operations with very high endurance with performance degradation. 3D XPoint bridged the gap between NAND and RAM. Unfortunately, it wasn’t enough. 

The technology had limited availability, adoption and high costs. Intel has announced the discontinuation of its Optane SSD DC P4800X drives. Despite being superior to NAND, it had limited market adoption as the chips were just not competitive with NAND on price and having an established infrastructure. Intel resumed its focus on developing its core processor business.

It's Hard to Knock The King Off the Mountain

3D XPoint can be a cautionary tale of a superior technology that couldn't get major adoption due to NAND Flash's high costs and incumbent dominance. Companies are unlikely to stray from an established infrastructure when something is the standard. The challengers will keep coming, but the moat is wide and deep for NAND as it is the standard, and companies are hesitant to stray from the standard in any technology.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
NVIDIA (NVDA)
4.7189 of 5 stars
$924.79-2.0%0.02%77.45Moderate Buy$966.55
Micron Technology (MU)
3.9246 of 5 stars
$125.29-2.0%0.37%-36.32Moderate Buy$125.64
Everspin Technologies (MRAM)
2.8344 of 5 stars
$6.17-0.6%N/A16.68Buy$9.00
GLOBALFOUNDRIES (GFS)
3.8538 of 5 stars
$53.95-0.4%N/A33.30Moderate Buy$60.62
International Business Machines (IBM)
4.4409 of 5 stars
$169.03+0.0%3.95%19.14Hold$181.29
Intel (INTC)
4.9803 of 5 stars
$31.83-0.6%1.57%33.16Hold$39.58
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Jea Yu

About Jea Yu

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Jea Yu has been a contributing writer for MarketBeat since 2018.

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Equities, options, ETFs and futures; fundamental, qualitative, quantitative and technical analysis and pattern identification; active and swing trading; trading systems and methodology development

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Bachelor of Arts, University of Maryland, College Park

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U.S. equity markets trader, writer and analyst for over 25 years. Published four books by publishers McGraw-Hill, John Wiley & Sons, Marketplace Books and Bloomberg Press. Speaker at various expos and seminars and has been quoted and featured in USA Today, The Wall Street Journal, Traders Magazine, The Financial Times and various trade publications, including Stocks & Commodities, Active Trader and Online Investor.


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