Is SK Hynix a Millionaire-Maker Stock?

Key Points SK Hynix trades at an incredibly cheap valuation despite clocking phenomenal growth. The memory specialist's healthy share of the fast-growing DRAM and NAND flash markets points to further growth. SK Hynix stock can become a multibagger, making it an ideal fit for anyone looking to build a million-dollar portfolio. 10 stocks we like better than SK Hynix › SK Hynix (NASDAQ: SKHY) has got off to an indifferent start on the U.S. stock market since its listing on the Nasdaq in July, with the memory giant dropping 3% since its Nasdaq debut. However, SK Hynix is one of the most important companies in the artificial intelligence (AI) infrastructure ecosystem. It controls a significant share of the memory market, an industry where demand has been significantly exceeding supply due to the build-out of AI data centers. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » The outstanding memory demand and the resulting supply shortage have sent stocks of SK Hynix's peers, Micron Technology and Sandisk , soaring over the past year or so. I won't be surprised to see SK Hynix following suit, making this semiconductor stock an ideal fit for investors looking to build a million-dollar portfolio. Let's look at the reasons why. Image source: The Motley Fool. SK Hynix's memory dominance will translate into phenomenal growth The memory market's revenue has been soaring at an incredible pace. AI data centers require substantial compute and storage capacity to run AI workloads, which explains why demand for these chips has significantly outpaced supply. As a result, memory prices have soared remarkably. Deloitte estimates that the price of dynamic random-access memory (DRAM) could jump by 4x in 2026. The consulting firm also notes that new memory capacity won't be coming online until 2029 or 2030, suggesting that the strong pricing environment is here to stay. So, it is easy to see why market research firm TrendForce anticipates the DRAM market's revenue to rise from $153.6 billion last year to $618.7 billion in 2026. The firm expects another solid jump in 2027, projecting $903.3 billion in DRAM revenue. Similarly, the need to store enormous amounts of data in AI data centers for training AI models and running inference applications has created a supply shortage in the NAND flash market. This explains why the NAND flash market's revenue is projected to jump from $71 billion last year to $270.6 billion in 2026. TrendForce expects growth to continue in 2027, with NAND flash industry revenue projected to reach $379.4 billion. All this is great news for SK Hynix investors. After all, it enjoys 26% share of the DRAM market, according to Counterpoint Research. Meanwhile, SK Hynix's NAND flash market share is at a healthy 22%. Given that the overall memory market's revenue is poised to hit $1.28 trillion in 2027, SK Hynix is poised to sustain the impressive growth it has been clocking. Data by YCharts More importantly, SK Hynix's valuation suggests that the market isn't pricing the company's outstanding growth prospects in the stock price. That's why I think it looks like an ideal growth stock for anyone looking to build a million-dollar portfolio. The stock deserves to trade at a premium valuation We have already seen the impressive growth SK Hynix has been clocking. Moreover, the memory market's outlook explains why analysts have become bullish on the company's growth prospects. Data by YCharts SK Hynix's solid top-line growth will translate into a nice jump in its bottom line as well. Data by YCharts The chart above shows that analysts forecast SK Hynix's earnings to grow at a 20%-plus rate over the next couple of years. However, supply constraints and robust demand for memory could help it do better than that. But even if SK Hynix's earnings grow in line with consensus estimates to $42.21 per share in 2028, it can deliver tremendous upside. That's because SK Hynix trades at just 6 times forward earnings. The tech-focused Nasdaq-100 index, for comparison, has a forward earnings multiple of 24. Ideally, SK Hynix should be trading at a significant premium to the index due to its terrific growth and sunny prospects. However, even if this AI stock trades at a conservative 15 times earnings at the end of 2028, its stock price could reach $633 (based on the $42.21 earnings per share estimate). That's 3.8x its current stock price. If the market rewards SK Hynix with a premium valuation, it could surge even higher. In the end, it is easy to see why SK Hynix stock seems worth buying for growth-oriented investors looking to build a million-dollar portfolio, as its cheap valuation and growth potential could make it a multibagger. Should you buy stock in SK Hynix right now? Before you buy stock in SK Hynix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SK Hynix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $437,097 !* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,355,077 !* Now, it’s worth noting Stock Advisor’s total average return is 978 % — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor , and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 1, 2026. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy .

SK Hynix trades at an incredibly cheap valuation despite clocking phenomenal growth.

The memory specialist's healthy share of the fast-growing DRAM and NAND flash markets points to further growth.

SK Hynix stock can become a multibagger, making it an ideal fit for anyone looking to build a million-dollar portfolio.

SK Hynix (NASDAQ: SKHY) has got off to an indifferent start on the U.S. stock market since its listing on the Nasdaq in July, with the memory giant dropping 3% since its Nasdaq debut.

However, SK Hynix is one of the most important companies in the artificial intelligence (AI) infrastructure ecosystem. It controls a significant share of the memory market, an industry where demand has been significantly exceeding supply due to the build-out of AI data centers.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

The outstanding memory demand and the resulting supply shortage have sent stocks of SK Hynix's peers, Micron Technology and Sandisk , soaring over the past year or so. I won't be surprised to see SK Hynix following suit, making this semiconductor stock an ideal fit for investors looking to build a million-dollar portfolio.