Counterpoint: SK Hynix is Riding the Supercycle

SK Hynix reported a five-fold surge in quarterly profit, driven by soaring demand for AI and high-bandwidth memory chips, marking a major rebound in the semiconductor supercycle. The company plans to significantly increase capital expenditures in 2026, reinforcing its aggressive expansion in advanced memory technologies to meet AI infrastructure needs. Analyst Tom Kang attributes the growth to SK Hynix’s dominance in HBM (High Bandwidth Memory), a critical component for AI accelerators and next-gen data centers. Despite global economic uncertainties, the firm’s strong performance reflects resilient demand from tech giants investing heavily in AI and quantum-adjacent computing hardware. Kang expects the supercycle to persist, with SK Hynix positioned as a key beneficiary amid tightening supply and escalating AI-driven chip requirements.