SK Hynix is the best positioned one of the memory trio. Most of the surge in memory sales comes from exploding DRAM prices as HBM has been eating the supply. Surging DRAM prices cannibalises Samsung’s electronics business. So, it’s three step forward one step back for Samsung. $MU makes most of its revenue from commodity DRAM, and supply here could catch demand as early as 2028, which will erode $MU’s current pricing power. SK Hynix, on the other hand, makes bulk of its revenues from HBM and it’s not a commodity. HBM4E, with hybrid bonding and custom base die that’ll be manufactured on advanced nodes, will be comparable to cutting edge logic chips in complexity. This will give substantial pricing power to the memory guys in HBM, and SK Hynix will be the biggest beneficiary as larger
View on X ↗