SK Hynix is a great opportunity worth the risk: after a past-month fall of about a quarter, two valuation measures are about five and three, roughly 80% below the sector average. Sales +250%, operating profit +550%, margins over 75%, net cash and multi-year contracts offset Chinese-competition and volatility concerns.

Now, we move on to our second option. We have the undisputed king of AI memory accelerators , the South Korean giant SK Hynix, whose stock market symbol is SKHY.

While SanDisk dominates the capacity layer thanks to its high-density NAND flash memory and enterprise storage solutions, SK Hynix dominates the actual speed layer for AI computing due to its specialization in dynamic random access memory (DRAM).

More specifically, high-bandwidth memory (HBM) where multiple DRAM chips are stacked vertically alongside graphics processing unit (GPU) accelerators. This is a physical structure that allows data to be transferred back and forth at very high speeds with less energy consumption .

SK Hynix's involvement is not limited to that ; it effectively controls about half of the global HBM market, having already begun shipping the next-generation HBM 4. In addition, through its subsidiary Solidym, SK Hynix holds nearly 20% of the NAND flash memory market, giving it a more diversified and integrated business model in both speed and storage, which helps it stand out and makes it a more attractive option overall.

However, despite all this, and despite what was initially a very promising IPO earlier this year, the share price has actually collapsed over the past month, losing about a quarter of its total value, so that today it is worth less than when the company first went public , which was a resounding success.

That IPO, by the way, was the largest for a foreign company in history, with the subscription rate exceeding seven times , which demonstrates the strength of the demand. However , today you can get shares at a lower price than that.

Speaking of which, the evaluation has become more attractive now. Currently, the projected earnings multiple and price-to-earnings-benefit-tax-depreciation-amendment ratio are only about five and three, respectively, both roughly 80% lower than the sector average. It's truly amazing.

Of course, there is a reason behind the heavy selling, but it is mostly due to market volatility and concerns about Chinese competition that have negatively impacted the sector, and these are very real concerns. I don't mean to belittle her .

But when you can get shares in the leading electronics company at such a low price, given this outstanding performance, I think it's worth the risk. For example, in the last quarter, demand for their products shattered records, with sales rising by more than 250%, operating profits jumping by more than 550% , and profit margins exceeding 75%, which is rare for a device manufacturer like this.

At the same time, their balance sheet has been greatly strengthened, now boasting enormous net cash reserves.

Best of all, much like SanDisk, SK is actively protecting itself from traditional boom-and-bust cycles by entering into long-term agreements with around 10 major corporate clients, already signed under multi-year agreements that also include high minimum price limits, including advance cash deposits that ensure demand clarity for years to come.

Overall, I think it's another great opportunity.