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Google TurboQuant dents memory-chip stocks, analysts say buy the dip

Google announced TurboQuant, an algorithm that sharply reduces AI cache memory needs and sparked a global selloff in memory stocks, but analysts say the efficiency may lower costs and ultimately boost demand.

Mar 26th 2026 · Republic of Korea

Insights

  • Google said TurboQuant cuts key-value cache memory demand by six times using extreme compression.
  • The corresponding TurboQuant research paper was published in April.
  • Shares of Samsung, SK Hynix and Chinese firms fell after the blog post, with GigaDevice down 5.89 percent and Montage down 3.53 percent in Shanghai.
  • Analysts, including Morgan Stanley research head Shawn Kim, said TurboQuant will raise throughput per chip and lower AI inference costs.
  • Analysts warned that efficiency gains could increase total memory demand through the Jevons paradox as services become cheaper to use.

Sources