HSBC: It's Too Early to Worry About the Memory Cycle Peaking; HSBC Prefers SK Hynix Among Korean Tech Stocks

Odaily Planet Daily News HSBC analysts stated in a research report that it may be too early to worry about the memory cycle peaking. The analysts believe that as agentic AI improves office productivity and reshapes workflows, the memory super-cycle is likely to continue. Improving profit margins from AI services continue to support strong cloud spending, and it is unlikely that hyperscale cloud providers will slow down the pace of computing power expansion as they compete for rapidly growing market share.

As next-generation high-bandwidth memory HBM4 gradually enters the market, the upward price trend for HBM products is expected to continue. Given SK Hynix's significant exposure to HBM, HSBC prefers SK Hynix among Korean tech stocks. HSBC expects that after HBM4 achieves mass adoption by 2027, SK Hynix's market share in the HBM segment is still expected to remain between 50% and 55%. (Jin Shi)