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Top AI Memory Maker SK Hynix May Add to Rally

The South Korean company’s stock has surged 96% since the start of last year, far outpacing memory rivals Samsung Electronics Co. and Micron Technology Inc.

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Bloomberg chart, Sk Hynx v Nvidia

Investors are bullish on the chance for more gains in shares of Nvidia Corp.’s top memory supplier SK Hynix Inc., which remain cheap even after a huge runup.

SK Hynix is still trading cheaper than peers Samsung, Micron

‘Too risky not to own SK Hynix,’ says DS Asset’s Yoon

Yet it’s still trading at just 11 times forward earnings estimates, compared with 15 for Samsung, 30 for Micron, and 27 times for the Philadelphia Semiconductor Index.

The key is that SK Hynix was able to get a jump on the competition in the market for high-bandwidth memory (HBM), which can supply large volumes of data at the high speed required by AI. That’s helped it garner greater investor attention after years of playing No. 2 to Samsung.

“It’s too risky not to own SK Hynix in the portfolio,” said Yoon Joonwon, a fund manager at DS Asset Management Co. “As global big tech firms are seeing further gains, investors are expecting more upside in SK Hynix too.”


Image: Chips