HSBC Dismisses Memory Chip Cycle Peak Fears, SK Hynix ADR Surges 27% After 10% Plunge

According to HSBC's latest report released on July 14, the investment banking firm dismissed concerns that the memory semiconductor industry has reached a cycle peak, citing emerging growth drivers. HSBC identified higher-bandwidth memory (HBM) pricing gains from rising DRAM costs, next-generation HBM4 adoption, and expanded multi-year supply contracts as key catalysts. The firm maintained a buy rating on SK Hynix, citing its dominant HBM position, while reaffirming a buy rating on Samsung Electronics. SK Hynix ADR rebounded sharply to $193.92 on July 14, up 27.29%, after declining nearly 10% the previous day.
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