Better Memory Stock: SK Hynix vs. Micron
SK Hynix and Micron are both riding the memory supercycle, but they have important differences.
The memory market is dominated by three major players: SK Hynix, Micron Technology, and Samsung. Together, they control more than 85% of the DRAM and 60% of the NAND markets. Demand for high bandwidth memory (HBM) surged due to the growth of artificial intelligence (AI) infrastructure, resulting in limited supply caused by the scarcity of extreme ultraviolet (EUV) lithography machines needed to manufacture HBM components.
SK Hynix leads in HBM production and revenue, with a significant partnership with Nvidia. Micron has a smaller share in HBM but secures 26 long-term memory deals, covering around 35% of its revenue through 2030. Both companies are seeing revenue growth due to higher prices, with Micron experiencing faster growth. While Micron is more exposed to potential drops in conventional memory prices, SK Hynix's focus on HBM and its strong ties with Nvidia make it the better memory stock to own in the long run.
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