Overview Key strengths Key risks Second-largest DRAM maker globally, with strength in high end chips including DDR5 and HBM3. Highly cyclical industry with significant volatility in profitability and cash flows. Leading position in rapidly expanding generative AI memory chip demand. Large losses in its NAND flash business. Quickly rebounding profitability and financial metrics from tough 2023, primarily on the back of product-mix improvement. Significant capital spending needs to keep up with rapid advances in technology, which results in elevated debts. Even though competitors such as Samsung Electronics Co. Ltd. and Micron Technology Inc. are making aggressive investments in high bandwidth memory (HBM) production, SK Hynix will continue to take the lion's share of this rapidly expanding market over next 12-18
