SK Hynix Just Sent a Huge Warning to Micron Investors
Micron's biggest competitor is raising capital to fund major spending plans.
Overview
Massive demand for memory chips for artificial intelligence (AI) training and inference has been a boon for the three major memory chipmakers. Shares of Micron Technology (NASDAQ: MU) have climbed over 850% in the past year, while its Korean competitors SK Hynix and Samsung Electronics are up nearly 900% and 500%, respectively, in the same period. All three have benefited from a massive supply/demand imbalance, which has allowed them to charge record-high prices for their products.
Now SK Hynix is making a move that should be a warning to Micron investors and the memory market in general. The company will list American depositary receipts on the Nasdaq stock exchange next month. The offer could raise over $29 billion. Here's why Micron investors need to pay attention.
Image source: The Motley Fool.
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Originally published at www.fool.com.