Skip the "Magnificent Seven": 2 Underappreciated Memory Stocks With More Room to Run

Despite the popularity of buying shares in the biggest tech companies as a solid beginning for investing during the AI boom, it's advisable not to entirely ignore the lesser-known tech companies. Specifically, memory manufacturers SK Hynix (SKHY +2.08%) and Micron Technology (MU +2.58%) have shown promising potential for investors who are open to exploring beyond the widely recognized names.

These memory makers' share prices have fallen by around 20% over the past month, but they present compelling opportunities for long-term growth. Despite the recent drop in SK Hynix's share price, the company has delivered remarkable financial results in its third-quarter report on October 28. Sales and earnings are growing rapidly, and the demand for its memory chips is at an all-time high.

The management expects the demand-supply imbalance to continue persisting until 2030. SK Hynix, as the second-largest player in the global DRAM market with a 25% market share, is well-positioned to observe the future trends in the memory market. Micron Technology's shares have not fared much better but are still showing impressive growth.

Its fiscal 2026 fourth-quarter report revealed a 352% increase in sales compared to the same period last year, with guidance for fiscal 2027 Q1 sales at $61.5 billion. Like SK Hynix, Micron is experiencing a surge in demand for memory chips and holds a 24% share of the DRAM market. The current low price-to-earnings (P/E) ratios of both stocks—SK Hynix at 11 and Micron at 13—make them excellent bargains in the tech sector, where the average P/E ratio is 24.

Given the robust growth forecasts for data center spending, which is expected to double to $2.1 trillion by 2028, investing in SK Hynix and Micron could be highly rewarding in the long run.