The Motley Fool
28 Oct 2026, 14:50 UTC · 51m ago
SK Hynix Says Memory Is Sold Out Through 2029. Micron Is a Winner, Too
Impact · against what's priced in
SK Hynix's guidance that supply will lag demand through 2030 serves as a powerful catalyst for a stock price that currently treats AI profitability as a cyclical peak. While Micron already prices in a tight market through 2027, the confirmation of a structural shortage through the end of the decade supports the long-term earnings power the market has previously declined to pay for.
- SKHY+0.70
Challenges what's priced in
- The price assumes
the market fully rejects the structural AI memory shortage thesis and treats current record profitability as a cyclical peak
The market currently assumes a severe cyclical reversion and rejects the structural shortage thesis; however, SK Hynix's report that production is sold out through 2029 and shortages will persist through 2030 directly supports the 'structural shortage' scenario the price currently declines.
