Should we buy storage, not just save?

On the evening of the 4th, the US stock market had already resumed normal trading, while during the day on the 4th, the Korean market also surged over 5%, hitting another all-time high.

The main driver of gains in the Korean stock market was the memory sector, such as Samsung Electronics and SK Hynix. In the Korean ETFs listed in the US, these two stocks already account for about 40% of the weight of the Korean ETF.

Within the memory sector, looking at the international giants, there aren't actually many companies, basically about three companies in the US, two in Korea, and one in Japan. Currently, the first and second places are Korean companies, namely Samsung Electronics and SK Hynix.

Recently, the performance of memory companies has been very good, and in the earnings conference call, the CEO of Micron also stated that the current demand for AI has just begun. For example, just the construction of data centers alone will drive memory demand, with a compound annual growth rate of 56% in the coming years. Memory demand can now be optimistically projected until 2027.

So we mentioned before that a good way to participate in the memory sector currently is to directly buy the US-listed memory ETF, DRAM. This is also the world's first listed memory-themed ETF, which mainly holds these five global memory companies.

As for risks, we still need to continue to pay attention to the Q2 earnings report and its guidance for the second half of the year. Overall, the memory sector is still within the scope of a cyclical sector. Currently, it is in a state of severe supply shortage, but these memory manufacturers are also expanding production vigorously. We also need to pay attention to the new changes in the supply-demand balance when the new capacity comes online.

(Not as investment advice)

$Samsung Electronics (SSNGY.US) $XL2CSOPHYNIX(07709.HK) $Roundhill Memory ETF(DRAM.US)