To The Moon

How does $SK hynix(SKHY)$ not work from here?

The setup is almost too obvious:

💰 1. The valuation is still crazy

Around 4x forward earnings for a company sitting at the center of the AI memory shortage.

The market is clearly pricing in a brutal memory-cycle reversal.

But what if this cycle is different?

🔥 2. The margins are insane

AI-driven HBM demand has completely changed the economics of memory.

SK hynix reported a 72% operating margin in Q1 2026, showing just how much pricing power the current supply environment can create.

🧠 3. The shortage isn't disappearing anytime soon

This is probably the biggest part of the thesis.

SK hynix's CEO recently said the memory shortage could persist through 2030, while the company plans to begin volume production of next-generation HBM4E in Indiana in 2029.

That's a very different setup from the traditional memory cycle where everyone suddenly adds capacity and destroys pricing.

🤝 4. Customers are locking in supply

Multi-year agreements are becoming increasingly important across the memory industry.

Customers don't want to show up two years from now and discover there isn't enough HBM.

That creates something memory investors haven't historically been able to rely on:

visibility.

And that's where the $SKHY thesis gets interesting.

The market is still looking at a memory company and thinking:

“Peak margins. Peak earnings. Don't pay a high multiple.”

But the other side of the trade is:

What if AI demand keeps supply constrained long enough for today's “peak” earnings to become the new baseline?

That's the re-rating opportunity. 👀

Cheap valuation.
Huge margins.
HBM demand.
Tight supply.
Long-term customer commitments.

The biggest risk is obvious: memory is still cyclical, and competitors can eventually add capacity.

But if the shortage really persists toward 2029–2030, the market may be underestimating how long this earnings cycle can last.

$SKHY could be one of the most interesting asymmetric AI-memory plays on the board. 🚀