Memory and storage supply chain picks
Ideas for those who feel they missed the boat
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Dear subscribers,
We write to float some investment ideas to those who feel they missed the boat on the likes of Micron, Western Digital and Seagate. We have to acknowledge that you may not have entirely missed the boat as there is an argument that, for example, SK Hynix is not unreasonably expensive today.
Nonetheless, the ideas are below the paywall below.
The ideas represent a little style drift for me as these companies are in Japan and I can’t claim to be 100% living and breathing Japanese tech at the moment. I thought you might appreciate the email anyway.
They appear to be oligopolies and monopolies trading at multiples that look reasonable relative to the projected end market growth and peers.
The SK Hynix results and the Nvidia GTC conference had some interesting impact on the some of these names:
SK Hynix confirmed that CapEx growth across the memory industry is “inevitable” (as translated) and that the company’s CapEx will “far outpace the level of this year.” The company also confirmed the first tool move-in at its M15X facility.
This commentary had quite an impact on the first idea. Despite being up at 5am today to read up and prepare for the SK Hynix call, the company ran 8% before I developed the conviction to size up.
The discussion of co-packaged optics at GTC October 2025 may provide a buying opportunity in respect of two other companies discussed below.
Separately, we have been on a bit of a hot streak this week:
Confirming the involvement of $1416 in the structural works of the US$ 7bn Micron plant in Singapore appears to have driven volume after the stock dipped to HK$ 0.17.
More tenuously, talking about OMSE 0.00%↑ at Singapore International Energy Week might have driven another spike in interest. We did get some more colour on the company’s history which we will share later.
Conference density in Singapore means I am currently attending Singapore Week of Innovation and Technology, where we are going to talking about Metasurface Technologies $8637, a supplier to Applied Materials. It might be too much to ask for that to move this week as well.
I hope you enjoy reading about the ideas, and as always, I appreciate questions and pushback.