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SK hynix Vs. Micron: 'This Time Is Different'
Seeking Alpha • • business
Key Points:
- SK hynix Inc. is rated Strong Buy compared to Micron Technology's Buy rating, primarily due to SK hynix's leadership in High Bandwidth Memory (HBM) and its role in the emerging High Bandwidth Fabric (HBF) standard.
- SK hynix holds 50% of the HBM market, which is double its share in the broader DRAM market, and began mass production of HBM4 in Q2, reinforcing its competitive edge.
- Industry-wide memory supply constraints are expected to persist until at least 2028, with SK hynix's CEO projecting shortages through 2030, supporting strong pricing and earnings outlooks.
- Risks to the investment thesis include the cyclical nature of the semiconductor market, competition from Chinese entrant CXMT, and valuation discrepancies between ADS and Seoul-listed shares, though structural AI demand remains a key growth driver.
- The author, an experienced investor with a background in economics and software engineering, holds long positions in both SK hynix and Micron and emphasizes the importance of technology leadership and market dynamics in his analysis.
