SK Hynix Plans Capacity Doubling; Analysts Downplay Threat to Micron (MU-US) Amid Sustained AI Demand

South Korean memory giant SK Hynix announced plans to double its overall production capacity over the next five years. This move, revealed by Chairman Chey Tae-won at Computex in June 2026, aims to meet surging AI-driven demand but analysts see limited immediate threat to U.S. counterpart Micron Technology (MU-US). Chey Tae-won projects memory supply shortages will persist until 2030, with high-bandwidth memory (HBM) demand expected to grow approximately 30% annually until the century's end. HBM production requires three times the wafer capacity of traditional memory, further straining supply. Micron (MU-US) stock has surged approximately 1570% over the past three years, benefiting from tight supply and rising prices. Despite SK Hynix's expansion, Micron's own capital expenditure is projected to exceed $25 billion this fiscal year, up from $13.8 billion last year. Micron management stated in March 2026 that AI chips are doubling DRAM usage, alongside demand from AI-enabled smartphones and PCs. Micron's Price-to-Earnings Growth (PEG) ratio stands at an attractive 0.33.