Bernstein has reiterated positive ratings on memory chip giants SK Hynix, Samsung, and Micron following a recent market pullback, citing strong AI-driven demand and structural supply shortages. The analyst firm argued that semiconductor equipment (WFE) stocks do not always move in tandem with memory stocks, pointing to historical correlations of just 0.4 to 0.6. For instance, from 2021–2022, WFE rose 15.3% while memory plunged 34%, a 49 percentage point gap.
SK Hynix continues to dominate the high-bandwidth memory (HBM) market with a 56-58% share, fueled by a close partnership with Nvidia. Its recent Nasdaq IPO raised $26.5 billion, marking the largest U.S. listing by a foreign company. Micron, on the other hand, reported a staggering fiscal Q3 2026 revenue of $41.46 billion—a 346% year-over-year surge—along with an 84.9% gross margin. Both companies, along with Samsung, trade at discounted forward earnings multiples compared to the broader semiconductor sector, yet UBS projects memory industry revenues could hit $1.76 trillion by 2027, supported by persistent undersupply.
Bernstein also highlighted Montage Technology as an outperform pick, raising its A-share target to CNY 400 on the back of a 76.5% CAGR in its ESP business through 2028. Meanwhile, SK Hynix’s CEO warned that 2027 could be the worst supply year in history, with demand outstripping capacity well beyond 2030.
