Google TurboQuant algorithm amplifies rather than reduces memory demand, explain researchers

Samsung Electronics reassures investors: first‑quarter 2026 profit will exceed annual results

A strong preliminary estimate of Samsung Electronics’ Q1 2026 earnings has eased concerns that arose after Google Research posted a blog about the TurboQuant technology. According to the company’s forecast, an “unprecedented super‑cycle” in the memory chip market and no signs that memory is becoming a limiting factor for AI producers are expected to drive three‑month profit growth above last year’s level.

How the stock dynamics changed
- After Google’s post, Samsung and SK Hynix shares fell sharply.
- Samsung raised its forecast, which pushed shares almost to historic highs and lifted the tension that had lingered two weeks after the TurboQuant news.

What is TurboQuant?
Google described TurboQuant as an algorithm capable of dramatically reducing the memory required by AI systems. This sparked a debate about the future demand for high‑performance memory chips in AI servers.

- Potential scenarios:
- Demand decline (if memory becomes “not a limiting factor”).
- Limited effect – modest drop in need.
- Demand increase – if TurboQuant lowers AI costs, new applications and services will emerge.

Expert assessments
Key takeaways from experts

Professor Kwon Seok‑joon (Seoul National University)
Reducing memory costs by 4–8× could threaten demand for high‑performance chips, but it also makes previously expensive compute tasks economically viable (programming assistants, multitasking AI agents).

Hann In‑su
TurboQuant opens the door to longer‑context tasks with limited memory and enables high‑performance AI systems on compact devices.

Kim Yong‑gon (Mirae Asset Securities)
Compares the situation to Kubernetes: a technology that made servers more efficient ultimately drove infrastructure demand rather than its decline.

Ray Van (SemiAnalysis)
The market underestimated TurboQuant. As AI models evolve, memory demand will grow both during training and inference. Long‑term supplier contracts will become more important than one‑off deals.

Samsung’s strategy
At the company’s annual meeting last month, one of the CEOs, Chun Yong‑hyun, emphasized moving to three‑ and five‑year agreements with major clients instead of quarterly and yearly ones. This will allow better planning of memory supply and respond to potential demand shifts.

What next?
The practical impact of TurboQuant will become visible after its official unveiling at the end of April in Brazil during the International AI Conference. While the technology remains a concept, its potential is already generating serious interest among investors and analysts.