Leveraged ETFs now hold $5.5 billion in SK Hynix assets, surpassing Nvidia’s $4.8 billion amid a shift to AI memory demand.
SK Hynix has become the focal point of AI chip investment, with leveraged ETFs holding $5.5 billion in assets tied to the stock, exceeding Nvidia’s $4.8 billion. The shift reflects a growing bottleneck in high-bandwidth memory (HBM), critical for AI accelerators, which has driven up memory prices and valuations.
Nvidia previously dominated the AI narrative with its GPUs, but the limiting factor has moved to HBM supply. SK Hynix, a key supplier of this memory, has seen speculative capital flow into its stock as demand surges. Memory stocks have reached record valuations as a result.
Analysts caution that leveraged ETFs, which rebalance daily, can amplify losses in volatile markets, making them risky for long-term exposure to AI memory trends.