SK Hynix reported record third-quarter revenue and operating profit on AI-driven demand, said more than 50% of its 2027–2028 capacity is already committed under long-term agreements, and repeated that the AI memory shortage could last through 2030. Its shares rose 7% to $156 and Micron gained 3% to $961, while Seagate slipped 2% to $653 despite beating estimates with $4.23 billion in revenue versus a $4.15 billion consensus and lifting its quarterly dividend. Wedbush's Matt Bryson estimated Seagate's guidance implies a gross margin of 60%, a sign that margin growth is slowing, while one market analysis reads Toshiba's expanded nearline production line as a threat to the tight supply behind Seagate's pricing power. Seagate's stock is down 29% over the past month but up 138% year to date.
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SK Hynix listed on the Nasdaq in July in the largest ADR offering in Wall Street history, raising roughly $26.5 billion, and major AI memory suppliers now trade on one US exchange. The author compares Micron, Sandisk, SK Hynix and Western Digital, pointing to Micron's HBM4 production for Nvidia's Vera Rubin platform, Sandisk's multiyear supply agreements, SK Hynix's single-digit multiple of trailing earnings, and Western Digital's nearly sold-out 2026 capacity. The article also flags memory's cyclical nature, noting Micron's shares lost roughly half their value in the 2022 downturn. In the author's own scenario, with assumed annual growth of 20%, 18% and 15% for different stocks, $1,000 split equally would reach about $1,880 by 2030, or about $1,460 if all four match a 10% market average.
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Memory chip prices are surging as AI data center demand outpaces supply: according to Tom's Hardware, one memory kit that cost about $191 a year ago now runs $1,118, up 485%. TrendForce reported conventional DRAM contract prices jumped roughly 90% to 95% in the first quarter of 2026, with NAND up 55% to 60%. SK Hynix said its memory capacity is essentially sold out for 2026, while Micron, SK Hynix and Samsung, which control over 95% of global DRAM production, are shifting wafer capacity toward high-bandwidth memory (HBM). Apple's DRAM costs for its next iPhone are projected to roughly triple, while memory executives say new fab capacity is not expected in meaningful volume until late 2027, with relief more likely in 2028 or 2029.
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- Why Micron Technology Stock Rallied Today
Micron shares rose about 4.8% in Wednesday trading, after SK Hynix reported record fiscal 2026 third-quarter revenue of 104.6 trillion won (roughly $78.9 billion), up 328% year over year, and operating profit of 83.3 trillion won (roughly $61.7 billion). SK Hynix said demand is expected to outpace supply through 2030 and its supply is essentially sold out for the next three years, easing fears of falling memory demand from 2028, and announced it would return 100 trillion won to shareholders. The article says Micron, one of the Big Three memory makers, stands to benefit from demand for HBM, DRAM and NAND, and has locked major customers into multi-year, non-cancelable contracts. Micron stock has gained more than 340% over the past year but trades at 13 times earnings, and the author describes that valuation as attractive.
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SK hynix says its AI memory capacity is already sold out, while Micron is locking buyers into multiyear contracts to absorb spillover supply. SK hynix posted Q2 revenue of KRW 79.32 trillion, up 256.8% year over year but below consensus of about KRW 84.12 trillion, with operating profit of KRW 60.54 trillion and a 48.6% operating margin. Micron's fiscal Q4 revenue reached $54.23 billion, beating the $50.97B consensus, and it has 26 strategic customer agreements, 10 of them signed this quarter. Micron guided fiscal Q1 revenue to $61.5B ± $1.5B. The author judges Micron to carry more downside exposure given its smaller HBM share and wider commodity memory business, while SK hynix's HBM position is stronger.
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