Sands Capital Management, LLC - Technology Innovators on SK hynix
Thesis
SK hynix is benefiting as the memory shortage broadens from high-bandwidth memory into conventional DRAM and NAND. AI inference and agentic workloads are increasing demand while physical constraints limit how quickly industry supply can expand. The company described the shortage as structural, multiyear, and broad-based, with meaningful capacity additions unlikely before the second half of 2027. Tight supply and sharply higher pricing should improve future customer negotiations and earnings power.
“SK hynix described the shortage as structural, multiyear, and broad-based across products, with meaningful capacity additions unlikely before the second half of 2027.”