---
title: "Google's algorithm optimization does not change the trend of memory demand. Morgan Stanley supports storage stocks and reiterates \"Overweight\" ratings for Micron Tech and Sandisk"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280657849.md"
description: "Morgan Stanley's latest research report points out that Google's TurboQuant algorithm, while capable of reducing some memory usage, is more likely to drive the demand for higher computing power in AI applications rather than weaken the overall demand for storage and memory. Analyst Joseph Moore stated that the market's interpretation of \"memory usage reduced by 6 times\" is exaggerated, primarily referring to KV Cache memory. The report reiterates an \"overweight\" rating on Micron Tech and Sandisk, believing that insufficient memory supply remains a core bottleneck for AI development"
datetime: "2026-03-26T15:28:03.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280657849.md)
  - [en](https://longbridge.com/en/news/280657849.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280657849.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/280657849.md) | [繁體中文](https://longbridge.com/zh-HK/news/280657849.md)


# Google's algorithm optimization does not change the trend of memory demand. Morgan Stanley supports storage stocks and reiterates "Overweight" ratings for Micron Tech and Sandisk

Market divergence is intensifying around the impact of Google's new algorithm on the storage industry chain. Morgan Stanley's latest research report points out that while the TurboQuant algorithm launched by Google (GOOGL.US, GOOG.US) can reduce some memory usage, it is more likely to drive AI applications towards higher computing power requirements rather than weaken the overall demand for storage and memory.

According to Dolphin Research, Morgan Stanley analyst Joseph Moore stated in the report that the market's general interpretation of the claim "memory usage reduced by 6 times" is exaggerated, as this optimization mainly targets KV Cache memory rather than overall memory demand. He noted, "The recent decline in storage stocks is partly due to this over-interpretation."

The report further mentions that Google's latest model, Gemini 3, has a context window of 1 million tokens, while the previous Gemini 1.5 Pro could even support up to 10 million tokens in testing, but was not released due to high inference costs. Analysts believe that as technologies like TurboQuant lower costs, future AI models will tend to use larger context sizes and more complex computations, thereby driving an increase in overall computing power and storage demand.

Based on this judgment, Morgan Stanley reiterated its "overweight" rating on Micron Technology (MU.US) and Sandisk (SNDK.US). Analysts pointed out that the core bottleneck facing AI development remains insufficient memory supply, especially in the DRAM sector, where the rapid growth in data center demand has squeezed memory supply for end products like PCs and smartphones.

Moore emphasized, "From our industry chain research, there are no signs indicating that memory or storage demand is declining."

### Related Stocks

- [Sandisk Corporation (SNDK.US)](https://longbridge.com/en/quote/SNDK.US.md)
- [Alphabet Inc. (GOOG.US)](https://longbridge.com/en/quote/GOOG.US.md)
- [Micron Technology, Inc. (MU.US)](https://longbridge.com/en/quote/MU.US.md)
- [Alphabet Inc. (GOOGL.US)](https://longbridge.com/en/quote/GOOGL.US.md)

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