Micron, with a market cap of about $1.12 trillion, benefits from strong demand for memory chips from AI data centers. The author argues AMD could overtake it, citing a 50% year-over-year rise in second-quarter revenue to $11.5 billion, a 107% jump in data center revenue, and a server processor share of 34.5%, up from 27.3%. The author also believes SK Hynix, with a market cap of about $780 billion, could overtake Micron, given its 50% share of the high-bandwidth memory market versus Micron's 18% and a P/E of 11 compared with Micron's 25. Analysts expect SK Hynix's long-term EPS growth at 82%, versus 65% for Micron. If SK Hynix earns $44.63 per share in 2028 and trades at 15 times earnings, its stock could reach $669, about four times its current price.
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