Two memory chipmakers – Micron Technology and SK Hynix – are the central beneficiaries of the explosive demand for high-bandwidth memory (HBM) driven by artificial intelligence infrastructure. However, recent sector-wide selling has shaken both stocks, raising questions about near-term sentiment and long-term leadership.
Micron’s record-breaking run hits a rough patch. The company reported astonishing fiscal Q2 2026 revenue of $23.86 billion, with gross margins of 74.4% and net income of $13.79 billion. The following quarter, revenue surged to $41.46 billion, margins widened to 84.9%, and net income topped $28.86 billion. These figures reflect a decisive pivot from legacy consumer markets toward AI server buildouts, where hyperscalers are spending relentlessly to expand computing capacity.
SK Hynix dominates HBM market share. In the fourth quarter of 2025, SK Hynix controlled approximately 57% of the global HBM market, well ahead of Samsung’s 22% and Micron’s 21%. This leadership propelled SK Hynix past Samsung Electronics in June 2026 to become South Korea’s most valuable listed company. With revenue of 52.6 trillion won and an operating profit of 37.6 trillion won in Q1 2026, the company expects AI chip demand to outpace its manufacturing capability. It is also pursuing a U.S. stock market debut, though its Nasdaq listing on July 10 ended with a more than 15% drop, adding contagion pressure across memory stocks.
Sharp selloffs rattle the sector. Micron shares tumbled 8.2% after reports that Chinese rival ChangXin Memory Technologies (CXMT) is preparing an $8.55 billion IPO, signaling intensifying long-term competition. Additional pressure came from cloud provider CoreWeave exploring hedges against weakening memory chip prices. The selloff deepened when TSMC raised full-year capex guidance to $60–$64 billion, sparking fears of compressed free cash flow across semiconductor companies and sending MU down another 5.7%. The combination dragged Micron to $848.34, down 26.5% from its June 2026 all-time high of $1,154.
Analysts remain bullish on structural supply-demand imbalance. Despite short-term technical indicators showing oversold conditions on daily charts, weekly and monthly signals point to a strong uptrend. Citi, TD Cowen, UBS, and BofA maintain Buy ratings, with price targets ranging from $1,400 to $1,600. UBS projects DRAM undersupply until at least Q2 2028, with demand growing 36.2% year-over-year in 2027 against only 19.3% supply growth. Micron’s Supply Commitment Agreements now cover nearly half of its revenue, drastically reducing cyclical commodity risk. Still, caution remains: notable insider selling and a put option initiation by Michael Burry near the peak add a note of wariness.
For investors, the contrast is clear: SK Hynix offers a purer bet on the AI server buildout through its HBM dominance, while Micron’s broader memory portfolio may provide more stability if parts of the memory cycle slow. The coming earnings season will be pivotal in determining whether this pullback is a temporary reset or the start of a deeper correction.
