SK Hynix vs Micron: Which Should You Buy?

For 42 years, Micron was basically the only memory chip stock US investors could buy directly on a US exchange. That changed on July 10 when SK Hynix listed its ADRs on Nasdaq under the ticker SKHY. Now there's a real choice to make.

Both companies are riding the same wave. AI data centers need high-bandwidth memory, and they need a lot of it.

Supply can't keep up with demand, and both companies are printing money because of it. Micron's revenue was up 346% year over year last quarter. SK Hynix's revenue was up 199% in Q1, with net income jumping 397% to $26.5 billion. These are not normal numbers.

So which one do you buy?

The Case for SK Hynix

SK Hynix literally invented HBM memory back in 2013 and still controls 56% of the market. It has a direct strategic partnership with Nvidia, which means its memory is deeply integrated into the hardware everyone is scrambling to buy. That's a durable competitive advantage that's hard to replicate quickly.

It trades at a P/E of 24 despite that growth, which isn't expensive for a market leader in the hottest part of the chip industry right now.

The Case for Micron

Micron has 42 years of trading history on US exchanges. You own the stock directly, not through an ADR structure, which technically means you own shares in a holding company tied to SK Hynix rather than the company itself.

Micron is also slightly cheaper at a P/E of 20 and has been delivering monster growth too. It's a known quantity with a long track record that existing investors understand well.

My take, I think for new money, SK Hynix is the better bet. Market leadership in HBM plus the Nvidia partnership is a harder combination to argue against.

Are you team Micron or team SK Hynix?