SK Hynix surged 5.80% today. U.S. ADRs hit a new intraday high for the current phase, and the memory-chip sector saw a strong rebound.
From a fundamentals perspective, the wave of AI computing power is driving an explosive surge in demand for HBM and DRAM. The situation of persistent supply shortages in storage is still ongoing. Memory prices have stabilized and are moving upward, and corporate earnings are expected to continue growing significantly.
It’s also worth noting that Korea-listed stocks still have a considerable distance from their previous all-time highs, even though the ADR market has already rallied. There remains room for further recovery going forward.
For cyclicals investments, the key is to plan when sentiment is pessimistic and stay calm amid the noise. The market is always full of various negative-news noise; truly real opportunities ultimately lie in changes in fundamentals.
From a fundamentals perspective, the wave of AI computing power is driving an explosive surge in demand for HBM and DRAM. The situation of persistent supply shortages in storage is still ongoing. Memory prices have stabilized and are moving upward, and corporate earnings are expected to continue growing significantly.
It’s also worth noting that Korea-listed stocks still have a considerable distance from their previous all-time highs, even though the ADR market has already rallied. There remains room for further recovery going forward.
For cyclicals investments, the key is to plan when sentiment is pessimistic and stay calm amid the noise. The market is always full of various negative-news noise; truly real opportunities ultimately lie in changes in fundamentals.