Sands Capital Management, LLC - Global Growth on SK hynix
Thesis
SK hynix is benefiting as AI inference and agentic workloads increase demand across high-bandwidth memory, conventional DRAM, and NAND. Physical constraints are limiting supply growth, and the company described the shortage as structural and multiyear. Sequential DRAM and NAND price increases were extremely strong, supporting substantial earnings revisions. Sands expects tight supply across product categories to strengthen future pricing negotiations and sustain the earnings cycle.
“SK hynix described the shortage as structural, multiyear, and broad-based, with meaningful capacity additions difficult before the second half of 2027.”