Micron Trades at 6x Forward Earnings Versus SK Hynix's 8x in AI Memory Boom

3 articles · Updated · The Motley Fool · Jul 14

Micron trades at about 6 times forward earnings, below SK Hynix at roughly 8, even as both ride the same AI-memory upcycle and approach or enter the trillion-dollar club.
56.4% HBM market share has made SK Hynix the segment leader, while Micron has narrowed the gap with data-center revenue up more than 650% year over year and segment gross margin more than doubling.
AI server build-outs are sustaining pricing because advanced DRAM and HBM capacity cannot be added quickly, and both companies have avoided the overbuilding that hurt earlier memory cycles.
IPO proceeds are funding SK Hynix fab and packaging expansion in South Korea, while Micron has lifted planned U.S. manufacturing investment to more than $250 billion across New York, Idaho and Virginia.
Both stocks still trade well below the S&P 500's roughly 21x forward P/E and semiconductor peers at 26x-30x, reinforcing the view that investors have not fully priced in the AI memory supercycle.

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The $1.28 Trillion AI Memory Boom: Strategic Rivalry and Investment Outlook for Micron and SK Hynix

Overview

The AI memory market is undergoing an unprecedented boom, driven by soaring demand from generative AI and large language models. This surge is fueled by massive investments in AI infrastructure by cloud and carrier providers, leading to rapid spending increases since 2024. As a result, the global semiconductor memory market, valued at $171.31 billion in 2025, is projected to reach $1.28 trillion by 2027, with Asia Pacific holding a dominant market share. The combination of escalating AI needs and aggressive infrastructure buildout is creating a historic supercycle, reshaping the competitive landscape and highlighting the critical role of advanced memory solutions.

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