When Micron (NASDAQ: MU) debuted as a public company in 1984, it wasn’t the only U.S. company making DRAM (dynamic random access memory). But in the years that followed, the other domestic chipmakers in that memory niche got out of it. Soon, though South Korea-based competitors remained, Micron was the only company in this space…
When Micron (NASDAQ: MU) debuted as a public company in 1984, it wasn’t the only U.S. company making DRAM (dynamic random access memory). But in the years that followed, the other domestic chipmakers in that memory niche got out of it. Soon, though South Korea-based competitors remained, Micron was the only company in this space trading on U.S. exchanges.
That changed this month.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
After a secondary listing of American depositary receipts (ADR) on the Nasdaq Exchange on July 10, SK Hynix (NASDAQ: SKHY) is now giving U.S. investors another stock to pick to capitalize on the memory market, a point that is particularly notable given data centers’ currently insatiable demand for high bandwidth memory (HBM). With that in mind, should chip stock investors shift their focus to SK Hynix or stay with Micron?
Image source: The Motley Fool.
The case for SK Hynix
When one looks at SK Hynix’s market position, one can easily understand why this new stock offering is welcome. For one thing, it has just formed a partnership with Nvidia. This should give SK Hynix a clear advantage, as sales of its HBM chips will benefit from their integration with the hardware of the dominant player in the AI accelerator market.
Moreover, SK Hynix was the first company to produce HBM, beginning production in 2013, and it’s still the largest producer. Today, it controls 56% of the HBM market on which Nvidia depends.
However, the memory chip market is also the most volatile part of the semiconductor industry. For now, memory makers can command premium pricing as demand for their offerings far outstrips what they can supply. However, they are all working to expand their production capacity. Eventually, supply should catch up to — and likely exceed — demand, sapping the companies’ pricing power. In previous cycles, that has led to memory stocks experiencing steep sell-offs. Under those circumstances, SK Hynix’s leading market share could work against it.
Fortunately, the market is unlikely to see a glut of memory chips for some time. Amid the current shortage, SK Hynix’s revenue rose 199% year over year in Q1. That followed a 47% increase in 2025. Also, its Q1 net income was $26.5 billion, a 397% year-over-year gain.
Despite that massive growth, it trades at a P/E ratio of 24. Admittedly, the historical volatility in the industry may make investors hesitant, especially those with little appetite for risk. Still, with no slowdown in sight for the AI infrastructure build-out that is powering memory demand, SK Hynix is in an enviable position.
Why investors might still prefer Micron stock
Despite SK Hynix’s positive attributes and higher market share, investors should not count out Micron. Considering its 42-year trading history, its longtime investors know well the attributes and the challenges that come with Micron and its industry.
Also, since Micron is based in the U.S., investors can own its shares directly rather than through an ADR. Although SK Hynix’s shares are likely safe, the ADR arrangement means one owns shares in a holding company tied to SK Hynix rather than owning a part of the company itself. That factor might give Micron an advantage in the minds of some investors.
Still, Micron is behind the curve in other respects. It did not begin making HBM until 2021, which explains its smaller market share. Also, while Micron is a key Nvidia supplier, it has not built a strategically integrated partnership with the GPU maker in the way that SK Hynix has.
However, Micron continues to benefit tremendously from the memory chip shortage. In its fiscal 2026 third quarter (which ended May 28), revenue rose by 346% year over year, well above its 202% growth across the first nine months of the fiscal year. Also, its net income for fiscal Q3 increased by almost 15-fold.
Despite those gains, Micron’s P/E ratio is 20, a seemingly low valuation that’s tempered by the industry’s history of volatility. Like with SK Hynix, investors who have limited risk tolerance should avoid Micron. But those who are OK with some volatility could still add it to their portfolios.
SK Hynix or Micron?
Ultimately, an investor who wants to choose just one of these stocks should probably lean toward SK Hynix.
Micron offers U.S. investors a long track record and a lower valuation, and in recent years, it has delivered outsize growth. Thus, investors have little reason to sell their existing Micron shares unless they anticipate an industry downturn.
Nonetheless, SK Hynix is the market leader in HBM. Also, thanks to its alliance with Nvidia, it is more likely to hold a durable competitive advantage in this volatile market. Such attributes indicate that investors are likely better off putting new money to work in SK Hynix stock.
Should you buy stock in SK Hynix right now?
Before you buy stock in SK Hynix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SK Hynix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $371,842!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,244,783!*
Now, it’s worth noting Stock Advisor’s total average return is 900% — a market-crushing outperformance compared to 207% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of July 18, 2026.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Nvidia. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.
Better Buy: SK Hynix vs. Micron was originally published by The Motley Fool
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
