AMD’s MEXT Acquisition Is More Important Than Markets Realize. Here’s How It Solves the Memory Bottleneck.

Advanced Micro Devices’ (AMD) recent gains have arrived on the back of AI inference-induced CPU demand. The market was already waiting for AMD stock to reach a $1 trillion valuation, but another variable has now added a new dimension to its prospects. On June 15, AMD announced the acquisition of MEXT, a memory technology company that will help AMD resolve the memory bottleneck through efficient resource utilization.

To understand what MEXT does, let's first understand how memory is used in AI workloads. Generally, we have two types of memory: flash and DRAM. Flash is cheap storage where vast amounts of data reside. DRAM is fast, expensive, and only used to store data that is currently being processed. MEXT bridges the fundamental trade-off when opting for either of these technologies. Here’s how.