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Skip the "Magnificent Seven": 2 Underappreciated Memory Stocks With More Room to Run
The Motley Fool • • business
Key Points:
- Leading tech giants like Amazon, Microsoft, Alphabet, Meta, Tesla, Apple, and Nvidia dominate AI infrastructure investments, making their stocks popular among tech investors.
- Memory chip makers SK Hynix and Micron Technology, despite recent share price declines of about 20%, have shown strong financial performance and robust demand driven by AI growth.
- SK Hynix reported a 328% revenue increase and a 632% rise in operating profit in Q3, securing long-term agreements for over half of its 2027-2028 memory production, with management expecting demand to exceed supply through 2030.
- Micron posted a 380% year-over-year revenue increase and a 1,000% rise in non-GAAP earnings in fiscal Q4 2026, with optimistic sales guidance for fiscal Q1 2027 projecting a 352% jump from the previous year.
- Both SK Hynix and Micron trade at attractive valuations with P/E ratios of 11 and 13 respectively, well below the tech sector average of 24, suggesting they could be undervalued investment opportunities in the growing AI memory market.
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