SK Hynix's Discount to Micron May Become History

South Korean semiconductor manufacturer SK Hynix has long traded at a lower valuation compared to its US rival Micron Technology. However, according to industry analysts, this situation may begin to change. SK Hynix's strong position, particularly in high-bandwidth memory (HBM), and the surge in AI-driven memory demand are helping the company close its valuation gap. While SK Hynix maintains its leadership in the HBM market, Micron's breakthroughs in this area have yet to fully materialize. Investors assess that SK Hynix's revenue growth and profitability ratios could surpass those of Micron. Specifically, SK Hynix's market share in HBM3E products, which are critical for AI servers and data centers, supports the company's stock performance. In the past, SK Hynix traded at an average discount of 20-30% compared to Micron, but recently this gap has narrowed to around 10%. Analysts note that SK Hynix's technological advantages and diversified customer portfolio could lead to the complete closure of this discount. However, fluctuations in global memory prices and geopolitical risks may slow this process. This is not investment advice.