The Hottest Stocks Going Are Among the Cheapest, for Good Reason
Memory stocks sell at single-digit multiples on skepticism AI boom will last.
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They’re the hottest stocks in the market right now, and they’re still among the cheapest shares going. That tells you a lot about the nature of the memory-chip industry.
Samsung shares have tripled while SK Hynix’s have quadrupled since the end of August as chip prices skyrocketed thanks to ravenous demand from AI. The companies and rivals such as Micron Technology are riding the surging sales to record profits, yet their stocks still trade at well under 10 times earnings, a fraction of the valuation of other top chip companies.