Odaily Planet Daily reports that, according to foreign media, a high-performing technology fund plans to hold shares in SK Hynix, betting that tightening supply will further benefit the South Korean AI memory chip manufacturer, whose stock has risen 1,000% over the past year.
Richard Clode, co-manager of the Global Technology Leaders Fund under Janus Henderson Investors, said that SK Hynix’s dominant position in the global high-bandwidth memory chip market means the company could experience “significantly stronger profit growth” next year when multi-year supply contracts are likely to be repriced at higher levels. The $8.3 billion fund has outperformed 96% of its peers this year and delivered a 36% return over the past three years. It currently holds stakes in U.S. memory chip manufacturers Micron Technology and SanDisk. Clode said, “Most people now believe that this year’s shortages will worsen next year, and the rise of more complex, high-end memory chips produced by companies like SK Hynix is altering the industry’s cyclicality, making long-term supply and demand fundamentals more favorable.” (Jinshi)