Better Memory Stock: SK Hynix vs. Micron
The memory market is dominated by three large players: pure-play memory makers SK Hynix (NASDAQ: SKHY) and Micron Technology (NASDAQ: MU), as well as the conglomerate Samsung. Combined, the three control over 85% of the DRAM (dynamic random-access memory) market and more than 60% of the NAND (flash) market.
Soaring demand from the artificial intelligence (AI) infrastructure build-out has created a significant supply-demand imbalance in the memory market, which in turn has driven surging memory prices. Much of this stems from the need for high bandwidth memory (HBM), a specialized form of DRAM packaged with graphics processing units (GPUs) and other AI accelerators to reduce latency and ensure these expensive chips aren’t left idle due to memory bottlenecks. Demand for HBM is growing in lockstep with demand for compute power, leading the big three memory makers to concentrate their resources on HBM.
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