Memory stocks are surging right now. AI demand is running into a tightening memory supply chain, which sets up a strong backdrop for the industry. SK Hynix just posted massive results that show how profitable this cycle could get.
Revenue came in at $73B, up 328% YoY. Operating profit was $58B, up 632% YoY. Operating margin hit 80%. DRAM and HBM supply is still constrained, and long term agreements already cover more than 50% of 2027-2028 production capacity.
SK Hynix sees DRAM demand growing 25% and NAND demand growing 18% in 2027, with supply constraints potentially lasting through 2030.
From where I stand, this is becoming much bigger than just an HBM trade. AI infrastructure is tightening the entire memory supply chain, which creates favorable conditions for $Micron Technology(MU)$ , Samsung and SKHY.
If pricing stays strong and supply remains constrained, earnings estimates across the sector could keep moving higher. SKHY expects the memory supply shortage to persist through 2030.
$SanDisk Corp.(SNDK)$ DRAM.X $Invesco QQQ(QQQ)$
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