HSBC: Concerns About a Peak in the Storage Cycle Are Premature; HSBC Prefers SK Hynix Among Korean Tech Stocks

Odaily Planet Daily News HSBC analysts stated in a research report that concerns about a peak in the storage cycle may be premature. The analysts believe that as agentic AI improves office productivity and reshapes workflows, the storage supercycle could persist. Continuously improving AI service margins continue to support robust cloud spending, and hyperscale cloud service providers are unlikely to slow down the pace of computing power expansion while competing for a rapidly growing market.

As the next-generation high bandwidth memory HBM4 gradually enters the market, the price increase 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 in 2027, SK Hynix's share of the HBM market could still remain at the 50% to 55% level. (Jin Shi)