HSBC analysts suggest it is premature to worry about the storage cycle peaking, citing the impact of agentic AI on office productivity and workflow transformation. The bank's report highlights that improving AI service profit margins are bolstering cloud spending, with hyperscale cloud providers unlikely to decelerate computing power expansion in a competitive market.
The introduction of next-generation High Bandwidth Memory (HBM4) is expected to sustain the upward trend in HBM prices. HSBC favors SK Hynix among Korean tech stocks due to its significant exposure to HBM. The bank anticipates that SK Hynix will maintain a 50% to 55% market share in HBM after HBM4's large-scale application in 2027.
HSBC Sees Continued Growth in Storage Cycle Amid AI Advancements
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