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Why I bought this memory stock

Why I bought this memory stock

Back in April, I wrote a deep dive about the AI memory industry. The more I dived in, the more bullish I became for a number of reasons:

  • The industry is dominated by just three companies: Micron, SK Hynix & Samsung
  • Each GPU generation needs exponentially more memory
  • The are very high barriers of entry, resulting in very strong pricing power

When I first looked at this sector from a distance and saw SK Hynix up 475%, Micron up 500%, and Samsung up 250% in just one year, my initial reaction was clear: I missed the boat.

But after really diving into it, I think the memory industry has still a very long way to go. In hindsight I should've initiated a position in my favorite memory business right after finishing my research, because it's up nearly 200% since.

Instead I was looking for a better entry but it never came while the business executed phenomenally. After a rather strong pullback I finally bought the stock which already up 43% since I shared my buy in our community. It's never too late to get into great businesses and I will add opportunistically on any significant dip.

My portfolio performance since January 2023

In this update, I'll share more details about:

  • Why I bought it
  • Why it's my favorite memory business
  • How large of a position it is
  • What I'm planning to do from here

Let's dive in!

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