AI TRENDS | HSBC Analysts Say It Is Too Early to Worry About a Peak in the Storage Cycle

HSBC analysts said in a research report that it is too early to worry that the storage cycle has peaked. According to Odaily, the analysts said a storage supercycle may continue as agentic AI boosts office productivity and reshapes workflows. They added that improving profit margins for AI services continue to support strong cloud spending, and hyperscale cloud providers are unlikely to slow the pace of computing capacity expansion as they compete for a fast-growing market. The analysts also said the upward trend in prices for high-bandwidth memory (HBM) products is expected to continue as next-generation HBM4 is gradually introduced to the market. HSBC said it prefers SK Hynix among South Korean technology stocks due to the company’s larger exposure to HBM. HSBC expects SK Hynix’s share of the HBM market to remain at 50% to 55% after HBM4 reaches large-scale adoption in 2027.