SK Hynix Vs Micron: Which Memory Stock Has More Potential?

On July 10, South Korean memory powerhouse SK Hynix launched ADRs on the Nasdaq. The listing saw high demand from investors with Bloomberg reporting that it was seven times oversubscribed¹. But is this stock a better play on the memory boom than Micron? Let’s compare the two memory stocks to see which appears to have more potential.

High-Bandwidth Memory Market Share

High-Bandwidth Memory (HBM) – the premium, ultra-fast memory that is needed to run advanced AI models – is a major driver of revenues for both SK Hynix and Micron at present. In terms of market share though, SK Hynix is the clear winner.

It made aggressive bets on this form of memory early on. As a result, it commands a near-60% share of the market today².

Now, Micron is becoming a formidable challenger to the South Korean company when it comes to HBM. It has already commenced high-volume production of its advanced 36GB 12-Hi HBM4 chips – which are specifically tailored for Nvidia's Vera Rubin GPU architecture – and is sold out through 2026 and even well into 2027³.

However, its market share is only around 20%² and the company is constrained by production capacity. So, for now, SK Hynix remains the clear leader here.

Growth

Turning to growth, SK Hynix posted revenue of KRW 52.58 trillion for the quarter ended March 31, 2026⁴. This represented an increase of 198% year-over-year.

Net profit was KRW 40.35 trillion. This figure was up 398% year-over-year.

As for Micron, it posted revenue of $41.46 billion for the quarter ended May 28, 2026⁵. This was 346% higher than the figure a year earlier.

Its net income was $28.86 billion. This represented an increase of 1,223% year-over-year.

So, Micron has been growing faster than SK Hynix recently. One reason for this is that the company is starting from a lower base in terms of HBM production.

Profit Margins

Interestingly, Micron has been generating higher margins recently too. For the most recent quarter, it posted a gross margin of 84.9% and an operating margin of 81.2%⁵.

By contrast, SK Hynix posted a gross margin of 79.3% and an operating margin of 71.5% for its most recent quarter⁴. So, while both companies are very profitable at the moment, Micron has the edge here.

Valuations

In terms of valuation, it’s a little bit tricky to compare the two stocks because their fiscal years start at different points of the year, so earnings forecasts are not like for like. However, we can still use forecasts to gain an idea of value.

With analysts expecting Micron to post earnings per share of $155⁶ for the fiscal year beginning in September, it’s trading on a forward-looking price-to-earnings (P/E) ratio of around six. For SK Hynix, analysts are forecasting earnings per share of KRW 445,530⁷ for the fiscal year starting January 2027, which puts the stock on a forward-looking P/E ratio of around five.

Analyst Price Forecasts

Finally, looking at price targets, the analyst community appears to see significant potential in both memory stocks. However, forecasts point to more upside for Micron.

Its average price target is $1,486⁸ according to investing.com, which is around 50% above the current stock price. For SK Hynix, the average price target is KRW 3207,962⁸, which is about 46% above the current stock price.

Both Memory Stocks Have Potential

Putting this all together, it’s hard to determine a standout. While SK Hynix has dominance in the HBM market, Micron has generated stronger growth recently along with higher margins.

Ultimately, both stocks could be worth watching as the AI revolution plays out. If demand for memory remains high, both companies could have success.

Footnotes:

¹Quartz, SK Hynix Nasdaq ADR offering more than 7 times oversubscribed, as of July 9, 2026

²Counterpoint Research, Global DRAM and HBM Market Share: Quarterly, as of June 9, 2026

³TheStreet, Veteran analyst drops massive Micron valuation prediction, as of July 8, 2026

⁴SK Hynix, SK hynix Announces 1Q26 Financial Results, as of April 22, 2026

⁵Micron, Micron Technology, Inc. Reports Record Results for the Third Quarter of Fiscal 2026, as of June 24,2026

⁶LSEG, as of July 10, 2026

⁷Yahoo Finance, as of July 10, 2026

⁸Investing.com, as of July 10, 2026