The Memory Supercycle Is Back in Motion — and Samsung and SK Hynix May Be the Stocks With the Most Torque
The memory supercycle is gaining momentum, driven by AI data center builds, with Samsung and SK Hynix potentially offering significant gains alongside Micron. SK Hynix leads in high-bandwidth memory and has impressive operating margins, making it a compelling investment opportunity.
The memory supercycle is continuing to gain momentum, driven by the AI revolution and data center builds consuming DRAM and SSDs. Micron's shares have surged 565% in the past year, but investors may consider diversifying into other memory chip titans like Samsung and SK Hynix. SK Hynix is a leader in high-bandwidth memory with 72% operating margins as of the first quarter. It may list on US markets in the summer, potentially leading to a multiple re-rating. Samsung is also poised to benefit from its size and resources, expanding production capacity. For those not waiting for a US listing, the iShares MSCI South Korea ETF is an alternative, with Samsung and SK Hynix making up over 25% of the ETF.
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