---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/42817122.md"
description: "BofA: US Semis> Chinese Open LLMs Drive Memory Demand: Recent open-source and open-weight model releases from China (such as Moonshot AI’s Kimi K3) do not threaten memory demand; rather, they reinforce a bullish thesis for memory and Micron Technology (MU).> API Pricing vs. Hardware Requirements: Aggressive Chinese API pricing (up to 5-350x cheaper than Western models) reflects business-model choices and market-share strategies rather than lower hardware costs. For example, Kimi K3 still requires roughly 1.4 TB of High Bandwidth Memory (HBM) per serving instance.> Non-Hardware Cost Advantages: Chinese model providers achieve cost advantages through architectural efficiency (such as Mixture of Experts [MoE] sparsity, MLA/hybrid attention, and native quantization) and infrastructure efficiencies (lower local electricity, labor, and land costs, alongside potential state-linked subsidies).> Open Models Expand Memory Sockets: Unlike closed models where millions of users share a single centralized HBM pool, open-weight models are downloaded and self-hosted across thousands of separate enterprise, cloud, and sovereign endpoints, multiplying global memory and storage sockets.> Scaling Outpaces Compression: While compression techniques and active-parameter sparsity reduce compute intensity, total model parameter sizes continue to scale up drastically (e.g., Kimi K3 reaching 2.8 trillion parameters), driving continuous demand for multi-tier memory hierarchies (HBM, DRAM, and NAND).  > Micron Technology (MU) Outlook: BofA reiterates its Buy rating on Micron with a $1,550 price objective, citing limited competitive threat from China's CXMT (which focuses on underserved consumer DRAM rather than advanced HBM3E/HBM4) and upcoming catalysts like the expiration of CHIPS Act buyback restrictions in late 2026.$Micron Tech(MU.US) $DRAM $EWY"
datetime: "2026-07-21T01:56:08.000Z"
locales:
  - [en](https://longbridge.com/en/topics/42817122.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/42817122.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/42817122.md)
author: "[Equity research](https://longbridge.com/en/profiles/2071818324550963200.md)"
---

# BofA: US Semis> Chinese Open LLMs Drive Memory …


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