HSBC: It's Too Early to Worry About the Storage Cycle Peaking

BlockBeats News, July 14 — HSBC analysts stated in a research report that it might be too early to worry about the storage cycle peaking. Analysts believe that as AI-driven intelligence enhances office productivity and reshapes workflows, the storage supercycle may continue. The improving profit margins of AI services continue to support strong cloud spending, and hyperscale cloud service providers are unlikely to slow down their expansion of computing power as they compete in a rapidly growing market. With the gradual introduction of next-generation high-bandwidth memory (HBM4) into the market, the upward trend in HBM product prices is expected to persist. Given SK Hynix's significant exposure to HBM, HSBC favors SK Hynix among South Korean tech stocks. HSBC predicts that once HBM4 achieves large-scale adoption in 2027, SK Hynix's market share in the HBM sector is likely to remain at the 50% to 55% level. (Jin10)