Others fear my greed, but right now I’m decisive and adding to my position on the pullback.
The reason is simple:
First, this isn’t a typical memory company—it’s the “shovel seller” of the AI era.
It has a very strong moat. For HBM (high-bandwidth memory), there are only three companies worldwide that can make it, and Hynix is the leader.
Hynix’s HBM3E is already in mass production, with leading yields. Nvidia’s H200 and B100/B200 HBM supply is fully allocated to Hynix—so much so that even Samsung can’t compete.
HBM technology barriers are extremely high: TSV (through-silicon via) processes, stacking technology, thermal/packaging solutions. Without 5–10 years of accumulation, you basically can’t pull it off.
Conventional DRAM is a red-ocean market, while HBM is a blue-ocean. By 2026, HBM is expected to jump from Hynix’s low single-digit share of DRAM revenue in 2023 to 30%+.
And the gross margin will be 2–3 times that of ordinary DRAM.
In plain terms: you can’t train AI without HBM, and HBM is only most dependable from Hynix. This isn’t a cyclical stock—it’s a must-have supplier for AI infrastructure.
Hynix = one of the toughest “shovel stock” plays in the AI era. With its HBM dominance, explosive financial performance, and a valuation knowledge gap, the three factors resonate—sky’s the limit.
The reason is simple:
First, this isn’t a typical memory company—it’s the “shovel seller” of the AI era.
It has a very strong moat. For HBM (high-bandwidth memory), there are only three companies worldwide that can make it, and Hynix is the leader.
Hynix’s HBM3E is already in mass production, with leading yields. Nvidia’s H200 and B100/B200 HBM supply is fully allocated to Hynix—so much so that even Samsung can’t compete.
HBM technology barriers are extremely high: TSV (through-silicon via) processes, stacking technology, thermal/packaging solutions. Without 5–10 years of accumulation, you basically can’t pull it off.
Conventional DRAM is a red-ocean market, while HBM is a blue-ocean. By 2026, HBM is expected to jump from Hynix’s low single-digit share of DRAM revenue in 2023 to 30%+.
And the gross margin will be 2–3 times that of ordinary DRAM.
In plain terms: you can’t train AI without HBM, and HBM is only most dependable from Hynix. This isn’t a cyclical stock—it’s a must-have supplier for AI infrastructure.
Hynix = one of the toughest “shovel stock” plays in the AI era. With its HBM dominance, explosive financial performance, and a valuation knowledge gap, the three factors resonate—sky’s the limit.