High-bandwidth memory

High-bandwidth memory (HBM) is a type of memory chip built by stacking multiple layers vertically and placing it physically next to a processor, rather than on a separate chip further away. That shorter distance and wider connection lets data move between the memory and the processor far faster than standard memory chips allow.

This design is what makes HBM the memory of choice for AI servers, since AI workloads move enormous amounts of data in and out of memory constantly, and a slower connection would leave expensive processors sitting idle waiting for data. Because HBM is harder to manufacture than standard memory, it commands higher prices and stronger margins, and whichever supplier leads in HBM production is generally best positioned to benefit from AI-driven demand.