HSBC: It is still early to worry about the peak of the storage cycle. Among Korean tech stocks, HSBC prefers SK Hynix

Odaily Planet Daily reports that 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 enhance office productivity and reshape workflows, the storage super-cycle is likely to continue. Improving profit margins for AI services continue to support strong cloud spending, and it is unlikely that hyperscale cloud service providers will slow the pace of computing power expansion as they compete for rapidly growing markets.

With the gradual introduction of the next-generation high-bandwidth memory HBM4, the upward trend in HBM product prices is expected to continue. Given SK Hynix's significant exposure to HBM, among Korean tech stocks, HSBC prefers SK Hynix. HSBC expects that after HBM4 achieves large-scale application in 2027, SK Hynix's market share in the HBM market could remain at 50% to 55%. (Jinshi)