SK Hynix: strong structural bullish trendIn this period of high geopolitical volatility and massive impact on energy prices and inflation expectations, what is the right strategy to adopt in the equity market? At the beginning of the month, I provided a list of the best ways to hedge a portfolio against geopolitical risk. You can access it again via the table below. Naturally, the most effective option is to increase the share of cash in the portfolio, which is precisely what institutional investors have been doing for several weeks. However, cash allocation rarely exceeds 6–7% on average of equities under management among institutional investors. Another option is therefore to turn to stocks that are decoupled from geopolitical risk—stocks with a strong structurally bullish trend.
This is precisely the case for the memory segment within AI infrastructure. Demand from AI data centers is so strong that there is now a global shortage of a key component of AI GPUs: memory (RAM), specifically referred to as HBM (High Bandwidth Memory) for AI.
As a result, companies that are leaders in AI memory manufacturing have structurally bullish fundamentals, given the large imbalance between limited supply and rapidly growing demand. These stocks are clearly resilient, even during periods of intense geopolitical stress.
In particular, I invite you to look at SK Hynix, which is listed in South Korea and also available in Europe via certificates.
Here are the key fundamental drivers for AI memory and SK Hynix:
• The DRAM market is dominated by three major players: Samsung Electronics, SK Hynix, and Micron Technology
• SK Hynix clearly dominates the AI memory (HBM) segment, with around 60% market share and is a key supplier for Nvidia GPUs
• Memory shortages are expected to persist until 2030 according to recent studies
• No, SK Hynix is not a global monopoly in RAM
• But yes, it has become the most strategic player in AI at the moment
• It is primarily listed on the Korean stock exchange (KRX)
• It is also tradable in Europe via certificates (DR / GDR)
• In Germany (notably Frankfurt), Global Depositary Receipts (GDRs) are available
The underlying trend is clearly bullish for SK Hynix stock, and all short-term pullbacks represent opportunities as long as the market remains above the 200-day moving average. The chart below shows Japanese candlesticks on monthly, weekly, and daily timeframes for SK Hynix.
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