Micron (MU) Stock Slides as SK Hynix Launches U.S. Trading — Should Investors Buy the Dip?

TLDR

• Shares of Micron declined 1.4% to $977.92 during Friday’s premarket session following SK Hynix’s Nasdaq ADR launch
• South Korean chipmaker SK Hynix is securing $26.5 billion in capital, potentially intensifying market rivalry
• Bank of America maintained its Buy recommendation on Micron, projecting shares could reach $1,550
• The memory chip giant expanded its domestic investment pledge from $200 billion to $250 billion extending through 2035
• Industry analysts project major technology firms will allocate approximately $1.5 trillion toward cloud and AI infrastructure by 2027, with memory chips representing 35–40% of expenditures

Shares of Micron experienced a 1.4% decline to $977.92 during Friday’s premarket hours following the Nasdaq debut of South Korean competitor SK Hynix through its American depositary receipts offering.

Micron Technology, Inc., MU

This downturn followed Thursday’s impressive 7.8% surge that propelled the stock to $1,022. Despite pulling back from late June peaks above $1,200, Micron’s shares have still more than tripled throughout 2026.

The introduction of SK Hynix ADRs on American exchanges provides investors with an alternative avenue for gaining exposure to the memory semiconductor sector. According to Barron’s analysis, these depositary receipts present a more affordable entry point into the memory chip market expansion compared to Micron’s current valuation, potentially prompting some market participants to diversify their holdings across both companies.

SK Hynix is simultaneously securing $26.5 billion through this public offering. These proceeds could fund expanded production capabilities, potentially escalating competitive pressure on Micron in future quarters.

However, Wall Street analysts maintain optimistic outlooks. Vivek Arya from BofA Global Research reaffirmed his Buy recommendation on Micron this week, establishing a $1,550 price objective.

Arya’s projections suggest major technology corporations will allocate approximately $1.5 trillion toward worldwide cloud computing and artificial intelligence infrastructure by 2027—representing a 40% to 50% increase from present investment levels. Memory components are anticipated to comprise 35% to 40% of these total expenditures.

“We believe the market is underestimating the transition toward longer-duration agreements and more predictable pricing,” Arya wrote. “As memory evolves from a cyclical commodity to a strategic AI enabler, multiples should expand.”

His $1,550 valuation derives from a sum-of-the-parts methodology—assigning approximately a 3x price-to-book ratio to Micron’s conventional memory operations and a 31x price-to-earnings multiple to its high-bandwidth memory division, both calculated using 2028 projections.

Micron Expands Domestic Investment to $250 Billion

Thursday brought Micron’s announcement of an expanded U.S. capital commitment reaching $250 billion through 2035, surpassing its earlier $200 billion pledge. The semiconductor manufacturer indicated this enhancement advances its objective of manufacturing 40% of DRAM production on American soil.

This comprehensive strategy encompasses a $100 billion initiative in New York state originally unveiled in 2022, with production operations not anticipated to commence until 2030.

Micron additionally revealed plans to deploy up to $3 billion toward fortifying America’s semiconductor supply infrastructure. This allocation includes $500 million in financial backing for GlobalWafers to develop a raw silicon wafer manufacturing facility in Sherman, Texas, reinforced by a decade-long supply partnership.

Industry Experts Dismiss Oversupply Concerns

Hendi Susanto, portfolio manager at the Gabelli Global Technology Leaders ETF, rejected market anxieties regarding potential capacity overproduction.

“The main players — Samsung, SK Hynix, and Micron — have demonstrated discipline on capacity expansion for many years now,” Susanto said. “The current market outlook is still expecting demand higher than supply in 2027.”

Micron’s stock concluded Thursday’s regular session with a 4.52% gain before experiencing the premarket retreat on Friday.