Janus Henderson Fund Bets on SK Hynix Amid Chip Supply Concerns

A high-performing technology fund plans to invest in SK Hynix, anticipating that supply constraints will further benefit the South Korean AI storage chip manufacturer, whose stock price has surged 1000% over the past year. According to Odaily, Richard Clode, co-manager of the Global Technology Leaders Fund at Janus Henderson Investors, stated that SK Hynix's dominance in the global high-bandwidth storage chip market could lead to significant profit growth next year when long-term supply contracts may be renegotiated at higher levels. The fund, valued at $8.3 billion, has outperformed 96% of its peers this year, with a three-year return of 36%. It currently holds shares in U.S. storage chip producers Micron Technology and SanDisk. Clode noted that most believe this year's shortages will worsen next year, and the rise of more complex high-end storage chips produced by companies like SK Hynix is altering the industry's cyclical nature, making the long-term supply-demand outlook more favorable.