SK Hynix tops Micron as Adam Spatacco's one AI memory pick

Spatacco frames the memory industry's notorious boom-and-bust cycle as the central risk, noting that when demand accelerates, manufacturers expand production, supply catches up, prices fall, and profit margins deteriorate. He argues advanced AI memory introduces a nuance: chip designers need suppliers that can meet increasingly demanding technical requirements, which encourages close collaboration between semiconductor designers and memory producers. SK Hynix's early investments in advanced memory packaging and manufacturing gave it a first-mover advantage in HBM, and Spatacco sees its opportunities extending beyond Nvidia's GPUs to custom silicon from hyperscalers such as Alphabet, Amazon, Microsoft, Meta Platforms, OpenAI, and Anthropic. On valuation, he notes SK Hynix's forward price-to-earnings basis remains fairly modest. The piece is an opinion column from a Motley Fool contributor who discloses positions in several of the companies discussed.