SK Hynix & Micron: Stocks Defy Chip Shortage Forecast

SK Hynix forecasts that the global memory chip shortage will persist until 2030, citing the increasing complexity of leading-edge manufacturing and the lengthy construction times for new plants. The South Korean company reported record third-quarter revenue, surpassing 100 trillion won for the first time, with operating profit climbing significantly and achieving an 80% operating margin. This projection is supported by long-term agreements with 14 major customers, covering over half of its production capacity for 2027 and 2028.

Micron Technology, an Idaho-based competitor, also expects demand to outstrip supply through calendar 2027 and 2028, with conditions tightening further. The company has secured 26 multiyear take-or-pay customer agreements that extend into 2031, backed by $32 billion in financial commitments. Despite record operating margins reported in fiscal Q4 2026, both SK Hynix and Micron trade at less than six times their expected 2027 earnings. This valuation implies investors anticipate a swift decline in profits, contrasting with the companies' long-term customer contracts and demand forecasts.