▶ Full Post Text
**This post was written by a human. I do not write Reddit posts with an LLM.**
Remember when Nvidia acquired Groq chips for $20 billion? [https://groq.com/](https://groq.com/)
Groq chips do not use external memory such as HBM or DDR for AI inferencing. It only uses the SRAM inside the chips. SRAM is made as part of the chip, not separately like HBM or DDR.
SRAM is tiny and expensive per gigabyte but it's extremely fast.
Each Groq chip has only 500MB of SRAM but 1,200 TB/s of bandwidth which is about 150x faster than Blackwell today.
If you have enough Groq chips connected together, you can have up to 150x faster token speed. Most people don't need this much speed, but extremely high value industries like biotech, finance, oil exploration, AI research, chip design would.
So let's do some basic math:
* A 10 trillion parameter model like Anthropic's Fable would need \~**25,000** Groq chips at 500MB of SRAM for each chip.
* To make 25,000 Groq chips, you'd need **266 TSMC N3 wafers**
* TSMC makes about 150,000 N3 wafers per month for the entire world
* If TSMC dedicates its entire N3 supply to only make Groq chips for inferencing Anthropic's Fable model, **they can only make around 550** of these systems per month.
In other words, if the world demands extremely fast AI tokens (and why wouldn't they?), then there will not be nearly enough capacity to go around.
TSMC is already maxed out making GPUs, networking chips, CPUs, etc.
If you believe in this hypothesis, then companies like TSMC, Intel, Samsung will benefit. Nvidia and Cerebras will also benefit. Cerebras also stores their models in SRAM.
Some of my posts here in the past:
* [https://www.reddit.com/r/stocks/comments/1rkep5v/the\_upcoming\_cpu\_shortage/](https://www.reddit.com/r/stocks/comments/1rkep5v/the_upcoming_cpu_shortage/)
* [https://www.reddit.com/r/stocks/comments/1stkmwz/reminder\_cpus\_are\_in\_huge\_demand\_intel\_earnings/](https://www.reddit.com/r/stocks/comments/1stkmwz/reminder_cpus_are_in_huge_demand_intel_earnings/)
* [https://www.reddit.com/r/stocks/comments/1r2nbln/ai\_play\_isnt\_just\_gpus\_its\_everything\_physically/](https://www.reddit.com/r/stocks/comments/1r2nbln/ai_play_isnt_just_gpus_its_everything_physically/)