Fund manager: Tightening supply will drive SK Hynix's even stronger profit growth next year

Golden Ten Data June 1st｜According to market sources, a well-performing technology fund plans to hold shares of SK Hynix, betting that tightening supply will further benefit the Korean AI memory chip manufacturer after its share price surged 1,000% over the past year. Richard Clode, co-manager of the Janus Henderson Investors' Global Technology Leaders Fund, stated that SK Hynix's dominant position in the global high-bandwidth memory chip market means the company could enjoy “even greater profit growth” next year when multi-year supply agreements may be repriced at higher levels. The fund has assets of $8.3 billion and has outperformed 96% of its peers this year, with a three-year return of 36%. The fund currently holds shares in U.S. memory chip producers Micron Technology and SanDisk. Clode said, “Most people now believe that this year's shortage will worsen further next year. The rise of sophisticated, harder-to-manufacture high-end memory chips produced by companies including SK Hynix is reshaping the industry's cycles and making long-term supply-demand prospects more favorable.”