tech
These chip stocks could extend historic gains by rallying over 110%, according to Nomura
Surging structural demand for memory in AI applications are likely to keep profitability high for chip stocks.
TL;DR
- SK Hynix and Samsung Electronics stocks have seen significant gains, powering the Kospi index to new peaks.
- Demand for memory chips, especially High-Bandwidth Memory (HBM), used in AI applications is soaring.
- Nomura predicts over 100% rally for both Samsung and SK Hynix, citing a structural growth phase in the memory industry since late 2022.
- The adoption of Retrieval-Augmented Generation (RAG) and agentic AI applications are accelerating demand for various memory types, including DRAM and SSDs.
- The memory industry is experiencing a 'triple memory super-cycle' across DRAM, HBM, and SSDs.
- SK Hynix and Samsung reported substantial year-on-year increases in operating profit in the first quarter of 2026.