Micron Rises over 4% to Record High as SK Hynix’s HBM4 Breakthrough Lifts Memory-Chip Sector

On Friday, shares of the U.S.-based memory chipmaker Micron Technology saw a significant rise, climbing 4.4%. This increase came in response to South Korean rival SK Hynix reaching an all-time high after unveiling the world's first HBM4 product.

Even though SK Hynix is a competing entity, the news was viewed positively for the entire memory chip industry as it is likely to boost demand for HBM. This event coincided with a notable surge in artificial intelligence (AI) stocks earlier in the week, following Oracle's impressive cloud infrastructure growth forecast.

SK Hynix's stock jumped 7% after announcing the completion of its development of HBM4, a next-gen memory product designed for ultra-high-performance AI. The company highlighted that HBM4 offers double the bandwidth and a 40% improvement in power efficiency over its predecessor, marking its sixth generation of HBM.

For Micron, although this development might initially seem to pose a threat, the overall memory chip market is influenced by the same supply and demand dynamics. Micron's HBM capacity for the year is already sold out, so the immediate impact on its results may be minimal. However, the announcement could potentially push industry prices higher.

This uptick follows Micron's gain the previous day, after Citigroup raised its price target for the stock to $175 and reaffirmed its buy rating, citing an upward trend in DRAM and NAND chip prices.

Looking ahead, Micron is scheduled to report its fiscal fourth-quarter earnings on September 23. Analysts predict a 43% increase in revenue to $11.1 billion, with adjusted earnings per share expected to more than double from $1.18 to $2.85. Should Micron exceed these expectations, the stock might see substantial gains, especially given its current forward P/E ratio of just 12.