HSBC: It's Too Early to Worry About Peak Storage Cycle; 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 peak of the storage cycle. Analysts believe that as AI agents improve office productivity and reshape workflows, the storage super cycle may continue. The continuously improving profit margins of AI services continue to support strong cloud spending, and hyperscalers 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 is gradually introduced to the market, the upward trend in HBM product pricing 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 market share in the HBM market is still expected to remain at 50% to 55%. (Jin Shi)