The memory market has been on fire, and arguably the top company in the field just made its U.S. debut when Korean company SK Hynix (NASDAQ: SKHY) listed its ADRs (American Depositary Receipts) on the Nasdaq.
With the memory market looking supply-constrained over the next several years, I’d be a buyer of the stock
The leader in HBM Among the big three DRAM makers, which also include Samsung and Micron, SK Hynix is arguably the top one to own. It was the first company to develop high-bandwidth memory (HBM), and as such, it is expected to control more than half the market for this sought-after memory, packaged with graphics processing units (GPUs) and other AI chips to help optimize their performance. The company has a multiyear HBM partnership with Nvidia and is its main partner in the space.
That’s a great place to be positioned. Approximately 78% of its revenue came from DRAM last quarter, with most of the rest from NAND (flash) memory. While a leader in HBM, the bulk of its revenue still comes from ordinary DRAM.