Is the Memory Supercycle Peak Near for Micron and SK Hynix?

• DRAM prices surge on AI demand, boosting MU and SKHY stocks. • AI-driven HBM demand differs from past cyclical memory booms. • Long-term contracts and capacity constraints may extend the cycle. DRAM prices and related stocks like Micron (MU) and SK Hynix (SKHY) have surged on AI demand, particularly for high-bandwidth memory (HBM) used with GPUs. Unlike past cycles driven by consumer devices, AI memory demand is structural and persistent. Capacity expansion is limited by EUV equipment shortages and HBM's higher wafer needs, supporting prices longer. Both firms are signing multi-year contracts—SK Hynix with Nvidia for $500B—providing revenue visibility. Analysts see peak earnings by 2028, but SK Hynix expects undersupply through 2030. SK Hynix stands out due to HBM leadership and Nvidia ties.