The artificial intelligence (AI) revolution started with a scramble for processing power, as graphics processing units (GPUs) from Nvidia (NASDAQ: NVDA) powered large language model training. Although GPUs remain top of mind for hyperscalers, demand has also begun to shift toward custom application-specific integrated circuits (ASICs) designed by Broadcom. Now, the bottleneck has moved downstream to memory chips.
Micron Technology (NASDAQ: MU) stands at the center of this market. The company designs and manufactures DRAM and high bandwidth memory (HBM) stacks that sit on top of GPUs. Equally important is Sandisk (NASDAQ: SNDK), which focuses on NAND flash storage and enterprise solid-state drives (SSDs).
This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia.
Continue » Both companies have delivered extraordinary returns during the past year: Micron shares have surged more than 600%, while Sandisk's have multiplied by nearly 2,800%. But what if I told you there is another memory pure play that may offer even more compelling upside and the potential to mirror Nvidia's transformative run? Let's dig into another AI memory stock hiding in plain sight.
Many investors outside Asia have limited familiarity with SK Hynix (NASDAQ: SKHY) because the company historically traded primarily on South Korean exchanges and only recently listed American depositary receipts. That distance inherently kept SK Hynix out of the spotlight. SK Hynix holds a dominant position in critical segments of AI memory.
According to Counterpoint Research, SK Hynix holds a clear majority share in HBM, near 58%. This is more than double that of Micron and Samsung, each of which hovers at about a fifth of the market. In the broader DRAM category, the company ranks second with roughly 29% share -- trailing only Samsung while comfortably ahead of Micron.
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