Skip the "Magnificent Seven": 2 Underappreciated Memory Stocks With More Room to Run

SK Hynix (SKHY) and Micron Technology (MU) are trading roughly 20% below recent levels, yet both posted strong earnings and locked in long-term contracts. That mismatch is the core of the bull case: fundamentals are holding while price has retreated.

Valuation is the hook. SKHY trades at a P/E of 11 and MU at 13, multiples the source frames as cheap relative to the Magnificent Seven names, which include AMZN, MSFT, GOOGL, META, NVDA, AAPL and TSLA. Together, SKHY and MU control 49% of the global DRAM market, a concentration that gives the pair outsized exposure to memory demand.

The demand story rests on one forecast: data center spending doubling to $2.1 trillion by 2028. The thesis is that AI infrastructure buildout pulls memory orders along with it. Interpretation: the long-term contracts both companies secured may reduce the earnings volatility that typically drives memory stocks, though the source gives no contract terms or sizes.

The comparison to mega-cap tech is the pitch. If the same AI spending lifts both groups, the lower multiples on SKHY and MU suggest more room for rerating than the richly valued large caps.