Sk Hynix is one of the cleanest ways to play the AI memory cycle right now : The company dominates HBM, the high bandwidth memory that NVIDIA relies on for its most advanced GPUs, and supply is still tight. NVIDIA said yesterday that memory is still in a massive shortage while the market value the company as if the company was on the top of a cycle.
That gives pricing power and unusually strong margins for a memory name. Unlike past cycles, demand isn’t just PCs and smartphones; it’s hyperscale AI capex, which is far less elastic.
The P/E is EXTREMELY low while the growth is astonishing.
The Chinese concurrency is a joke because they are massively behind and Trump will never let China profit from the AI chain.
As a conclusion, if AI buildout continues even at a moderate pace, Sk Hynix sits at the bottleneck. You’re buying a picks and shovels supplier in an arms race.