RAM, HBM and the stocks behind AI’s memory hunger
An investment report on RAM, DRAM and High-Bandwidth Memory: market structure, manufacturer stocks, valuation, balance-sheet quality, current news and a pragmatic look at whether entry at current price levels still makes sense.
Executive summary: the bottleneck is not only GPUs
From side product to strategic resource
AI training and inference require memory bandwidth. HBM is therefore no longer a boring DRAM product, but a bottleneck with pricing power.
Quasi-oligopoly
SK hynix, Samsung and Micron dominate the market. New competitors cannot build up relevant capacities in the short term in this technologically demanding market.
Sold-out capacity
Micron reports HBM supply for 2026 including HBM4 as awarded; Samsung speaks of ongoing supply shortages until 2027; SK hynix remains the HBM benchmark.
Bottom line in one sentence: Fundamentally, the storage cycle looks strong, but stocks are already pricing in a lot of the future. SK hynix is the HBM favorite in terms of quality, Micron is the high beta winner, Samsung is the cheaper turnaround candidate.
Market shares & core KPIs
Valuation today: P/E, P/S, balance-sheet quality
| Stock | Price | P/E TTM | P/S TTM | P/B | Debt ratio | Balance-sheet / valuation verdict | Assessment |
|---|---|---|---|---|---|---|---|
| SK hynix 000660.KS | 2.783.000 KRW | 26,1 | 14,86 | 11,95 | 26,27% | Best profitability in the set: ROE 45.8%, net margin 56.9%. Balance sheet greatly improved, but rating very sporty. | Only in tranches / on pullbacks |
| Micron MU | 1.048,51 USD | 49,0 | 20,31 | 16,29 | 28,62% | Extreme Earnings Momentum Case; However, the P/S and P/E ratios already signal high market expectations. | High beta, tranches |
| Samsung Electronics 005930.KS | 359.000 KRW | 28,8 | 6,18 | 5,06 | 25,16% | Broadest balance sheet, lowest P/S ratio in the comparison. But less pure HBM leverage and execution risk. | Most reasonable entry |
SK hynix: growth, valuation and balance sheet
HBM Leader: maximum AI storage purity, but no longer valued favorably after the price rally. Purchase only staggered/during setbacks; strong in the long term, possible overheating in the short term.
Revenue & earnings (annual basis)
Sales and profits are presented on an annual basis over the last maximum of 10 years; This means that the development remains easy to read and is not overshadowed by short-term TTM fluctuations.
Closing price
The price development is presented separately so that it remains legible regardless of sales and valuation figures.
Valuation multiples: P/E, P/S, P/B
Presented separately so that rating levels and trends remain clearly visible.
Multiple-based valuation
Dedicated SmartDeer valuation view based on historical multiples; supplements the current P/E, P/S and P/B classification.
Balance sheet: assets, liabilities, equity
Cash flow, CapEx, free cash flow
Micron: growth, valuation and balance sheet
US pure play with very strong momentum. Valuation high, but earnings call and outlook justify some. More suitable for staged purchases than for a one-off entry.
Revenue & earnings (annual basis)
Sales and profits are presented on an annual basis over the last maximum of 10 years; This means that the development remains easy to read and is not overshadowed by short-term TTM fluctuations.
Closing price
The price development is presented separately so that it remains legible regardless of sales and valuation figures.
Valuation multiples: P/E, P/S, P/B
Presented separately so that rating levels and trends remain clearly visible.
Multiple-based valuation
Dedicated SmartDeer valuation view based on historical multiples; supplements the current P/E, P/S and P/B classification.
Balance sheet: assets, liabilities, equity
Cash flow, CapEx, free cash flow
Samsung Electronics: growth, valuation and balance sheet
Broader group, lower HBM purity leverage, but turnaround opportunity. In terms of valuation, it is more reasonable than the hype pure plays, but execution at HBM remains the test.
Revenue & earnings (annual basis)
Sales and profits are presented on an annual basis over the last maximum of 10 years; This means that the development remains easy to read and is not overshadowed by short-term TTM fluctuations.
Closing price
The price development is presented separately so that it remains legible regardless of sales and valuation figures.
Valuation multiples: P/E, P/S, P/B
Presented separately so that rating levels and trends remain clearly visible.
Multiple-based valuation
Dedicated SmartDeer valuation view based on historical multiples; supplements the current P/E, P/S and P/B classification.
Balance sheet: assets, liabilities, equity
Cash flow, CapEx, free cash flow
Micron revenue structure: DRAM is the lever
Why this matters
Micron is currently coming along 77% from DRAM and too round 23% from NAND. The HBM boom does not end up in some subordinate clause, but in the core P&L. That's exactly why Micron has performed so strongly — and exactly why the stock can react brutally when price or demand expectations tip.
No equivalent segment pie data was available in the MCP for Samsung/SK hynix; therefore only Micron with segment chart here.
Current news & earnings calls
Micron
- Q2 2026: Revenue $23.9 billion, gross margin 75%, EPS $12.20, free cash flow $6.9 billion.
- Guidance Q3: approximately USD 33.5 billion in sales, approximately 81% gross margin, EPS approximately USD 19.15.
- Management still sees DRAM/NAND narrowly beyond 2026; HBM-TAM is expected to grow to around USD 100 billion by 2028.
- HBM4 36GB 12-Hi in Volume Shipments for Nvidia Vera Rubin; HBM4E under development.
Samsung
- Q1 2026: Record sales KRW 134 trillion, operating profit KRW 57 trillion, operating margin 43%.
- Memory focus: HBM4, HBM4E, high-density DDR5, PCIe Gen 6 SSDs.
- Samsung expects memory shortages to extend into 2027.
- Strategy: more binding multi-year supply agreements, so less “commodity casino”, more predictable supply chains.
SK hynix
- Current news situation: SK hynix remains one of the most important HBM beneficiaries; According to recent market reports, a possible US ADR placement is being discussed, which could expand the international investor base.
- Record figures were reported in the financial media for Q1 2026: strong sales growth, exceptionally high operating margin and continued robust demand for AI memory/HBM.
- The share benefits greatly from the HBM narrative and therefore also has increased volatility: price movements depend heavily on AI infrastructure, HBM4 delivery capability and expectations of storage prices.
Outlook: assessment at the current price level
SK hynix
Quality yes, timing difficult
The HBM Leader deserves a premium rating more than its competitors. However, after the strong rally, the short-term opportunity/risk appears challenging. Small tranches, setbacks and further monitoring of the HBM4 execution seem to make more sense.
Micron
Strong momentum, hot valuation
The earnings calls show record numbers, strong guidance and high HBM utilization. At the same time, P/E ratio ~49 and P/E ratio ~20 assume a very robust continuation of development. This is more suitable for investors who are willing to take risks than for a defensive basic investment.
Samsung
Most rational entry
Samsung is less pure, but has a broader balance sheet and is significantly cheaper on P/S. Anyone who wants HBM exposure but doesn't want to pay the full SK/MU euphoria will find the more sober candidate here - with the risk that HBM-Execution will continue to lag behind.