Prediction: 2 Under $1 Trillion Stocks That Will Be Worth More Than Micron 5 Years From Now
SK Hynix and AMD should surpass Micron's valuation in the next few years.
In the semiconductor industry, two under-$1 trillion market-cap companies are predicted to surpass Micron in value within five years. SK Hynix (SKHY -7.95%) and Advanced Micro Devices (AMD -10.88%) are the two contenders. SK Hynix and Micron are direct competitors in the memory market, with SK Hynix leading in high bandwidth memory (HBM) demand.
HBM, a specialized form of DRAM, is in high demand due to its use in graphics processing units (GPUs) and AI chips. SK Hynix currently leads in HBM market share, with about 50%, and has a $500 billion long-term contract with Nvidia. AMD, while not as cheap as SK Hynix and Micron, has significant opportunities in the AI infrastructure space.
The company is investing in inference and agentic AI, positioning its GPUs for inference and leading in server CPUs. AMD's GPUs use a chiplet design, allowing them to be packed with more memory, ideal for inference. The company has major commitments from OpenAI, Meta Platforms, Anthropic, Microsoft, and Oracle, with deals worth over $300 billion in revenue over the next few years.
AMD is also developing a new 10th-generation Tensor Processing Unit (TPU) that will integrate on-package CPU cores, potentially opening up another large revenue stream.
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