Prediction: 2 Stocks That Will Be Worth More Than Micron 5 Years From Now
2026-10-13 16:45
•Harsh Chauhan •The Motley Fool
••••• ••• Axe Cap view
Why AMD and SK Hynix Could Eclipse Micron in 5 Years
AMD’s AI momentum and SK Hynix’s valuation edge set them apart from Micron for long-term gains.
Micron has been a solid player in memory chips, but it’s losing the growth race to AMD and SK Hynix. AMD’s stunning 107% growth in data center revenue, boosted by AI demand, is pushing its server market share higher. This connects directly to the global AI compute expansion, which is huge. SK Hynix stands out with a cheaper valuation—11 times earnings versus Micron’s 25—and a dominant 50% slice in high-bandwidth memory, essential for future tech. For South African investors, direct exposure is limited, but USD/ZAR remains relevant. A stronger dollar could weigh on local tech-linked counters like Naspers and Prosus given their tech-heavy earnings offshore. That said, if AI hype fades or a global chip glut hits, AMD and SK Hynix shares may stumble. But for now, both look positioned to beat Micron over the next five years. this is just our opinion and not financial advice
Avoid Micron for now and watch AMD and SK Hynix closely. For local investors, consider the potential indirect impact on tech-related counters via USD/ZAR moves and hold positions in Prosus and Naspers selectively. Safeguard currency exposure as the rand could react strongly.
- AMD
- SK Hynix
- USD/ZAR
- Prosus
- AI demand may cool down faster than expected
- Overcapacity in memory chip production could pressure profits
6/10
The article predicts that Advanced Micro Devices (AMD) and SK Hynix will overtake Micron Technology in market value over the next five years. AMD is benefiting from strong AI data center demand with accelerating revenue growth and expanding market share in server processors and GPUs. SK Hynix offers a cheaper valuation at 11x earnings versus Micron's 25x, while maintaining stronger market share in high-bandwidth memory (50% vs 18%) and higher projected earnings growth (82% vs 65%), with potential to reach $669 per share by 2028.
Our take is based on reporting first published by The Motley Fool.
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