There is a coherent argument for SK Hynix being the most resilient name, but it is not guaranteed to outperform.
SK Hynix derives a larger share of earnings from high-bandwidth memory (HBM), where demand is still driven by AI accelerators and supply remains relatively tight. Micron and SanDisk have greater exposure to conventional DRAM or NAND pricing, which is more vulnerable if oversupply emerges. That helps explain why SK Hynix declined less.
However, resilience is different from immunity. If hyperscaler AI spending slows, HBM demand weakens, or customers digest inventory, SK Hynix will also face pressure. CEO insider selling at Micron may affect sentiment, but it does not necessarily signal an industry peak on its own.
The key indicators to watch are HBM pricing, AI capex from hyperscalers, and customer inventory levels. If those remain healthy, SK Hynix's relative strength makes sense. If they deteriorate, the whole memory sector is likely to move lower together, with SK Hynix simply falling less rather than escaping the downturn.
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- Burnell Ezekiel·07-31 15:44Thanks for the analysis, may I know that do you think HBM can reduce the cyclicality of the memory industry, or will it eventually follow the same cycle as DRAM and NAND?LikeReport