Micron stock slipped 1.4% to $977.92 in premarket trading Friday as South Korean rival SK Hynix made its U.S. market debut with its American depositary receipts listing on the Nasdaq.
The dip came just a day after Micron jumped 7.8% to $1,022 on Thursday. The stock has more than tripled in 2026, though it has pulled back from highs above $1,200 hit in late June.
SK Hynix’s arrival on U.S. markets gives investors a new way to access the memory-chip sector. Barron’s noted the ADRs offer a cheaper entry point into the memory boom compared to Micron, which may lead some investors to split exposure between the two.
SK Hynix is also raising $26.5 billion through the listing. That capital could be deployed into manufacturing capacity, raising the competitive stakes for Micron down the line.
Still, analysts aren’t sounding the alarm. BofA Global Research analyst Vivek Arya reiterated a Buy on Micron this week, setting a price target of $1,550.
Arya estimates Big Tech spending on global cloud and AI infrastructure will hit around $1.5 trillion in 2027 — up 40% to 50% from current levels. Memory is expected to account for 35% to 40% of that total.
“We believe the market is underestimating the transition toward longer-duration agreements and more predictable pricing,” Arya wrote. “As memory evolves from a cyclical commodity to a strategic AI enabler, multiples should expand.”
His $1,550 target is built on a sum-of-the-parts model — applying a price-to-book ratio of roughly 3x to Micron’s traditional memory business and a 31x price-to-earnings multiple to its high-bandwidth memory segment, both based on 2028 estimates.
On Thursday, Micron announced it was expanding its U.S. investment plan to $250 billion through 2035, up from a previous commitment of $200 billion. The company said the increase supports its goal of producing 40% of its DRAM output domestically.
The plan includes a $100 billion project in New York state that was first announced in 2022 and isn’t expected to begin production until 2030.
Micron also said it will invest up to $3 billion to strengthen the U.S. semiconductor supply chain. Part of that includes $500 million in financing support for GlobalWafers to advance a raw silicon wafer facility in Sherman, Texas, backed by a 10-year supply agreement.
Portfolio manager Hendi Susanto of the Gabelli Global Technology Leaders ETF pushed back on concerns about capacity flooding the market.
“The main players — Samsung, SK Hynix, and Micron — have demonstrated discipline on capacity expansion for many years now,” Susanto said. “The current market outlook is still expecting demand higher than supply in 2027.”
Micron stock closed up 4.52% on Thursday before the premarket dip Friday.
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