The Best Memory Stock to Buy in July Isn't Micron or Sandisk. It Is This Trillion-Dollar Giant

The memory supercycle has supercharged Micron Technology (NASDAQ: MU) and Sandisk (NASDAQ: SNDK) over the past year, as both companies have been reporting stunning increases in their revenue and earnings due to the favorable demand-supply dynamics of the memory market.

While Micron stock has jumped 8x over the past year, Sandisk's gains stand at a whopping 3,650%. There is a strong possibility that both companies will sustain their red-hot momentum, fueled by the skyrocketing demand for memory chips and the ongoing supply shortage that won't ease any time soon, despite the addition of new capacity.

However, there is another memory giant -- SK Hynix -- that's winning big from the memory boom. Its shares have already jumped 243% in 2026, as of this writing, and it currently has a market cap of just over $1 trillion. The South Korean giant is planning to raise $29.4 billion through its U.S. stock market listing this month, and its American Depository Receipts (ADRs) will start trading on the Nasdaq on July 10.

Let's look at the reasons why SK Hynix seems like the better growth stock to buy in July over Micron and Sandisk.

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SK Hynix's market share puts it in a stronger position to capitalize on the memory boom

SK Hynix sells both dynamic random-access memory (DRAM) and NAND flash. Importantly, it dominates Micron and Sandisk in both these markets.

Source: Counterpoint Research. Market share numbers are for Q1 2026. Sandisk doesn't sell DRAM, hence its market share is not available (NA).

The company's impressive market share is translating into solid financial gains. The company's operating profit jumped by 5x year over year in the January-March quarter this year on the back of a 198% jump in the top line. SK Hynix is now aiming for a bigger share of the memory pie by aggressively enhancing its output.

The company noted in April that demand for its artificial intelligence (AI)-focused high-bandwidth memory (HBM) chips is significantly outpacing its production capacity over the next three years. Not surprisingly, the capital that SK Hynix will raise following its U.S. listing is expected to be directed toward the construction of more production facilities and the purchase of advanced chipmaking equipment.

Additionally, SK Hynix and Samsung, along with the South Korean government, aim to double the country's DRAM output over the next five years by investing $590 billion in four fabrication plants. This should allow SK Hynix to fulfill more orders for HBM, a market where it was the largest player in Q1 with a 58% market share.

The company is well ahead of Samsung and Micron in this fast-growing space, with both competitors controlling 21% each of the HBM market in Q1. Specifically, SK Hynix is expected to ramp up its DRAM wafer production capacity from 550,000 wafers currently to 1 million wafers by 2030. This should help the company maintain its dominance in the HBM market, which is expected to witness a 15x jump in demand by 2035.

The potential jump in HBM demand is poised to be significantly larger than the additional wafer capacity that SK Hynix is anticipated to bring online by the end of the decade. So, the favorable pricing environment that's powering the company's growth is here to stay. Not surprisingly, analysts are forecasting SK Hynix's earnings to increase by 424% this year. What's worth noting is that analysts expect the company's earnings growth to slow to just 40% in 2027, but that's unlikely to be the case given the catalysts discussed above.

The stock seems like a better bet over Micron and Sandisk

SK Hynix trades at an attractive 23 times earnings right now, almost in line with Micron's price-to-earnings ratio of 22 and significantly lower than Sandisk's earnings multiple of 60. The forward earnings multiple of 8 is also quite attractive. Micron, for comparison, trades at 6.3 times forward earnings, and Sandisk is significantly more expensive at 27 times forward earnings.

The reason SK Hynix seems like the better bet is its stronger market share in both NAND and DRAM, as well as its aggressive capacity expansion plan, which should allow it to grab a bigger share of the booming memory market. Also, SK Hynix's strong market share gives it greater pricing power than its peers.

All this makes SK Hynix a top AI stock to buy in July, and it won't be surprising to see its shares soar following its ADR listing, given its status as one of the biggest beneficiaries of the memory supercycle.

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.