30 Best and Worst Data Center Stocks

17. SK Hynix (OTC:HXSCF)

Upside Potential: 22%

Number of hedge funds: N/A

SK Hynix (OTC:HXSCF) is a prominent semiconductor supplier, manufacturing Dynamic Random Access Memory (DRAM) chips, flash memory (NAND flash) chips, and CMOS Image Sensors (CIS) for a diverse array of global customers. These products serve various applications, including smartphones, servers, PCs, and automotive systems. Over the years, the company has fortified its position as a leading memory technology firm with advanced offerings such as High-Bandwidth Memory (HBM) and enterprise SSDs (eSSDs).

Recently, SK Hynix (OTC:HXSCF) announced a collaboration with SK Telecom and Penguin Solutions to spearhead innovation in AI data center solutions. Furthermore, the company launched the PS1012 SSD, a high-capacity SSD designed for AI data centers, which delivers double the data transfer speed of previous generations.

SK Hynix (OTC:HXSCF) also reported its Q4 2024 earnings, showcasing robust top-line growth and profitability driven by rising sales of AI memory products, including HBM and eSSD. The company projects that the demand for HBM and high-density server DRAM will continue to grow, fueled by global big tech companies’ investments in AI servers and the increasing importance of AI inference technology. This positions SK Hynix (OTC:HXSCF) well to benefit from the expanding demand for memory chips, especially as data centers, cloud computing, AI, and big data proliferate. However, management also highlighted delays in demand recovery in consumer markets like smartphones and PCs, which will negatively impact volumes and pricing in 2025. This has led to weaker investor sentiment, affecting both the company’s share price and that of its peers.