HSBC analysts said in a research note it is too early to assume the storage
cycle has peaked. Agentic AI-driven productivity gains and workflow changes
could extend a storage supercycle, while improving AI service margins continue
to support robust cloud spending; hyperscale cloud providers are unlikely to
slow compute-capacity expansion. The phased introduction of next-generation
high-bandwidth memory HBM4 should sustain upward pressure on HBM prices. Given
SK Hynix’s large HBM exposure, HSBC prefers the stock among Korean techs and
expects SK Hynix to hold roughly 50-55% of the HBM market once HBM4 reaches mass
deployment around 2027.
