Top Tech Fund Plans to Buy SK Hynix in Bet on Memory Chip Crunch
Janus Henderson Investors’ Global Technology Leaders Fund plans to acquire SK Hynix shares, anticipating supply shortages will boost the South Korean AI memory chipmaker’s earnings. The fund cites SK Hynix’s dominance in high-bandwidth memory chips and expects multi-year supply contracts to be renegotiated at higher prices next year.
Janus Henderson Investors’ Global Technology Leaders Fund will increase its stake in SK Hynix Inc., betting on tighter memory chip supply to drive further growth for the South Korean manufacturer. The fund’s co-manager, Richard Clode, highlighted SK Hynix’s leading position in high-bandwidth memory chips, which could result in outsized earnings growth next year. The decision follows SK Hynix’s 1,000% stock rally over the past year, fueled by strong demand for AI-related memory chips. Clode noted that multi-year supply contracts will likely be repriced at elevated levels, benefiting SK Hynix’s profitability. SK Hynix’s dominance in the global high-bandwidth memory market is a key factor in the fund’s confidence. The company’s ability to secure favorable contract terms amid supply constraints is expected to strengthen its financial performance. The fund’s move reflects broader market optimism about semiconductor demand, particularly in AI applications. Analysts suggest that supply shortages and high demand will continue to support chipmakers like SK Hynix in the near term.
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