SK Hynix and Samsung Have a $2 Trillion Warning for Micron Stock Investors. Is This a Signal to Sell?

Yahoo Finance ·

Micron Technology ( MU +1.45% ) stock has been on a tear over the past year. Shares of the memory specialist have jumped nearly 8x in a short time, driven by a rapid increase in demand for memory chips that has overwhelmed supply. The memory supply shortage has been a massive tailwind for Micron Technology's bottom line. The company's earnings have been growing exponentially due to the incredible rise in memory prices. However, Micron's peers, Samsung and SK Hynix, have ambitious investment plans that could significantly reduce the supply demand gap in the memory industry. That may not be a good thing for Micron stock . Here's why. As reported by Reuters , South Korea aims to double its memory chip production capacity over the next five years. Samsung and SK Hynix are going to play a key role in this expansion, as they have pledged an investment of just over $2 trillion.

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