The AI boom has created huge demand for memory chips, turning three memory makers – Micron Technology, SK Hynix and Samsung Electronic — into market’s biggest winner.. In the last one year, Micron’s stock climbed over 850%, while SK Hynix and Samsung have surged 900% and 500%, respectively.
But, now a different story unfolds. SK Hynix will list American depositary receipts on the Nasdaq stock exchange next month in a deal that could raise more than $29 billion. And, as per the SEC filing, the company would be using the money to construct new production facilities in Korea and to purchase new fabrication equipment.
Now, more production means more memory chips in the market and since memory chips are largely interchangeable, customers can easily switch between suppliers. So, from that perspective, if SK Hynix has more chips to sell, it can then play on the price point putting pressure on Micron.
So, the bigger question is: Will SK Hynix’s expansion hurt Micron? also, SK Hynix or Micron – which is a longterm buy
Will SK Hynix’s production expansion pose a threat to Micron?
Room for both players to grow
The expansion will sharpen competition, but “threat” may be too strong a word given how undersupplied the memory market currently is, Sonam Srivastava, Founder and Fund Manager, Wright Research PMS
SK Hynix commands roughly 60% of the global HBM market and remains Nvidia’s primary HBM supplier. Its planned Nasdaq ADR listing will fund new fabs in Korea, including the Yongin campus, and additional EUV equipment from ASML. But, Micron is far from standing still. It posted fiscal Q3 2026 revenue of $41.46 billion, up 346% year-on-year, with gross margins crossing 81% for the first time. Micron’s entire 2026 HBM output is already sold out, and the company said it can fulfil only half to two thirds of current customer demand.
With the HBM market projected to grow from $35 billion in 2025 to nearly $100 billion by 2028, there is likely room for both players to grow simultaneously rather than one displacing the other.
Real threat? Too much supply could push prices down
Another aspect to consider, is the fact that “the extra capacity SK Hynix is planning won’t really show up in the market for a few years,” Rishabh Nahar, Partner and Fund Manager at Qode Advisors
“For now, the memory market is actually tight on supply, not flooded. In fact, HBM chips for 2026 are already booked out at SK Hynix, Samsung, and Micron. Micron has also signed up sixteen big customers, so their future demand is pretty much locked in, no matter what SK Hynix does next.”
However, looking a bit further out, things get more interesting. If all three—SK Hynix, Samsung, and Micron—bring new factories online around 2027 or 2028, the real risk is that too much supply could push prices down across the whole industry, Nahar adds.
Both Srivastava and Nahar believe the bigger story to watch is how disciplined memory-chip makers remain once supply eventually catches up with demand.
SK Hynix or Micron, which is the better long-term bet?
Both are essentially AI infrastructure plays wearing memory-chip clothing, so the answer depends on what an investor is optimising for, says Srivastava.
SK Hynix has the advantage of scale and a strong lead in high-bandwidth memory (HBM) chips supplied to Nvidia and Google. Its upcoming Nasdaq listing could also boost its valuation. Micron, meanwhile, offers greater geographic diversification.
“So, SK Hynix looks like the stronger near-term momentum trade off the back of its Nasdaq debut, while Micron may be the steadier long-term hold precisely because of the SCA structure locking in margins ahead of the next downturn,” Srivastava said adding that it does not have to about choosing one over the other as investors can keep both in their portfolio.
Nahar, on other hand, bets on SK Hynix for the long haul. He says, SK Hynix controls about 58% of the HBM market and remains Nvidia’s key HBM supplier. It is also the first to begin testing next-generation HBM4E chips. Once a supplier gets into a big customer’s plans, it’s tough to switch, so that advantage sticks. Then, its upcoming Nasdaq listing could be another catalyst. Despite leading the fast-growing HBM market, SK Hynix still trades at a lower valuation than Micron—a gap that could narrow over time.
“Overall, I prefer SK Hynix for its staying power in HBM. But if you’re looking for exposure to AI memory with a lower entry price and quicker growth, Micron is worth a look.”
What SK Hynix’s Nasdaq listing means for Indian investors?
Instead of picking between the two stocks, Viram Shah believes the more important question is what SK Hynix’s Nasdaq listing means for Indian investors.
Until now, investing in SK Hynix was difficult for most Indian investors because it traded only on the Korean stock exchange. But, once these ADRs trade on Nasdaq, investors will be able to buy both SK Hynix and Micron in US dollars through the same international brokerage account.
“So the shift here isn’t ‘A versus B’ — it’s that this whole memory-and-AI theme just became more accessible from India,” he concludes