Big Tech companies like Nvidia have experienced significant growth due to the AI boom. The supply chain for AI involves various companies in Asia-Pacific, including those producing AI graphics processing units and printed circuit boards. Memory chips, particularly those with high performance and bandwidth, have gained prominence in AI. Samsung and SK Hynix are the dominant players in the memory chip market, with Samsung being the largest manufacturer of dynamic random-access memory chips. However, SK Hynix has emerged as a strong contender, being the first to mass-produce HBM3E chips used in AI chipsets.

Both companies reported positive earnings in late April, with Samsung beating expectations and SK Hynix breaking its streak of net losses. When it comes to investing in the AI boom, some experts prefer SK Hynix due to its early leadership in HBM3 and its partnership with TSMC to develop HBM4. SK Hynix is considered a pure memory play, while Samsung has a more diversified portfolio. Analysts recommend remaining cautious with Samsung and considering pure-play memory firms like SK Hynix until Samsung demonstrates renewed technological leadership in memory. Sung Kyu Kim, an analyst at Daiwa Capital Markets, sees an opportunity to invest in both Samsung and SK Hynix during the memory upturn cycle, but predicts Samsung will catch up and have more upside in the near term.