According to foreign media reports, a top-performing technology fund plans to hold shares of SK Hynix, betting that tightening supply will further benefit the South Korean AI memory chip maker after its stock price surged 1000% over the past year.
Richard Clode, co-manager of the $8.3 billion Global Technology Leaders Fund at Janus Henderson Investors, stated that SK Hynix's dominance in the global high-bandwidth memory chip market means the company could enjoy "even stronger earnings growth" next year when multi-year supply contracts may be repriced at higher levels. The fund has outperformed 96% of its peers this year and delivered a 36% return over the past three years. It currently holds stakes in U.S. memory chip makers Micron Technology and SanDisk. Clode said, "Most people now believe that the shortage this year will worsen further next year. The rise of harder-to-manufacture high-end memory chips produced by companies including SK Hynix is reshaping the industry's cyclical nature, making the long-term supply-demand outlook more favorable." (Jin10)