Micron And SK Hynix Stock At Risk As Memory Cycle Peak Nears

AI memory chip manufacturers have had some of their best months over the last year. Micron (MU) and SK Hynix were relatively unknown names, but have become the highlights of today’s stock market. The surge in the demand for AI chips has consequently created a massive need for memory chips. So much so that the AI industry has led to a global shortage of memory chips. Micron, SK Hynix, and Samsung are three of the biggest memory providers and command substantial market presence. However, the memory markets may be in for a reality check as the cycle may be coming to an end. Will the memory market cycle lead to a price dip for Micron and SK Hynix?

Will Micron And SK Hynix Dip As Memory Market Cycle Nears End?

According to Morgan Stanley, the memory chip cycle will enter its final stage in the fourth quarter. Analysts warn that the steep price increases that fueled the market over the last year signals a move towards late-stage industry cycle. Micron (MU) has already seen a price dip over the last month despite reporting record revenue in its quarterly earnings. The stock could see a price surge by the fourth before seeing a dip.

… Continue reading the full article at the original source below.