Could This Listing Close the Valuation Gap With Micron?

For years, one of the odd facts of the memory chip world is that SK Hynix (NASDAQ: SKHY) -- arguably the strongest player in the business -- has traded at a discount to its U.S.-listed rival, Micron Technology (NASDAQ: MU). Now that SK Hynix shares trade on the Nasdaq, it's worth asking whether that gap can finally close, and how much of any rerating would rest on solid ground, versus artificial intelligence (AI) enthusiasm that could just as easily cool.The discount is real and long-standing; over more than a decade, Micron has commanded an average valuation premium of roughly 35% over SK Hynix. What's striking is that the gap has little to do with business quality. SK Hynix leads the market for the high-bandwidth memory (HBM) AI systems depend on, and its operating margin has outpaced Micron's in recent years. The discount instead reflects duller structural factors: harder access for U.S. investors, a smaller freely traded share count, and a perception that Korean companies are less shareholder-friendly. In other words, it's a plumbing problem, not a performance problem. Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool