AI Image
Not Micron. Not Sandisk. This Memory Stock Is Quietly Gaining Share.
The Motley Fool • • business
Key Points:
- The generative AI market's rapid growth has led to a consistent demand for memory chips, especially high-bandwidth memory (HBM) and NAND flash memory used in data center GPUs and SSDs.
- Micron and Sandisk stocks have surged dramatically due to their roles in producing HBM and NAND chips, with Micron up 1,400% and Sandisk soaring 4,420% since its spin-off in early 2025.
- SK Hynix, the world's second-largest producer of DRAM and NAND chips, holds over half of the HBM market and produces a majority of current-generation HBM4 chips used in Nvidia's data center GPUs.
- Trading at about five times next year's earnings, SK Hynix offers a more attractive valuation compared to Micron and Sandisk, with analysts projecting a 107% compound annual growth rate in earnings per share from 2025 to 2028.
- With its significant scale, diversification, and integrated offerings of HBM and high-capacity SSDs, SK Hynix is positioned as a safer and potentially high-growth investment in the evolving AI memory chip market.
