Episode summary
SK Hynix Shares Plunge Most on Record in Deepening Korea Selloff | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Scarlet Fu · Guests: Mandeep Singh, Tamlin Bason, Ryan Fisher
Summary
The discussion centered on how the AI infrastructure trade is still being driven by capex rather than day-to-day market swings. The guest argued that the recent SK Hynix volatility was less important than the broader investment cycle, saying the key question is whether hyperscalers keep raising spending into 2027 and 2028. He said long-term investors still view memory and related chip names as part of a multi-year AI buildout, even with fears of peak earnings.
On chip demand, the guest pointed to TSMC’s sales and said the company is tracking well above 40% year over year, with growth still supported by AI-related demand. He contrasted TSMC’s more balanced volume-and-pricing profile with memory makers that are seeing more direct pricing power, and argued that suppliers like ASML benefit as memory and foundry companies keep expanding capacity.
The second segment focused on Apple’s lawsuit against OpenAI over alleged trade-secret theft tied to devices and former Apple employees. The guest said Apple may seek a preliminary injunction within weeks and likely has a strong case for near-term relief, while warning that the dispute could create reputational and recruiting risks for OpenAI.
The final segment looked at European EV charging consolidation, where smaller operators are being acquired and networks are chasing scale, better assets, and stronger grid access. The guest said competition remains intense, with supermarkets, oil majors, and Tesla all pressuring margins.
Key takeaways
- The guest said hyperscaler capex for 2027 and 2028 matters more than short-term stock volatility in SK Hynix and other memory names.
- He said TSMC is tracking more than 40% year-over-year growth and remains supported by AI demand.
- The guest argued ASML should benefit as memory and chipmakers keep raising capital spending to expand supply.
- He said Apple may pursue a preliminary injunction in the OpenAI lawsuit within weeks and has a strong chance of near-term relief.
- The guest said the lawsuit could dampen OpenAI’s recruiting power and create broader caution around poaching in AI.
Notable quotes
“everything comes down to the capex numbers for 2027 and 2028 and we'll learn about that when they report earnings”
“I think on the whole everyone buys into this multi-year buildout for uh AI”
“we are easily tracking over a 40% increase year-over-year and the seasonality was better than expected”
How the episode opens
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Switch gears to uh technology. Why not? Uh Mandep Singh joins us here global head of tech research for Bloomberg Intelligence. Lots of ways to go here Mandep. Let's start with SKH highinex. What did you make of their US listing on Friday? Maybe how that and the stocks trading off today you know 5% been traded off pretty I think was it 15% in Korea
And the cost be down about 9% on the day.
What do what do you make of all that? I mean I think the day-to-day volatility will be there and uh we're kind of going through a phase where everyone is trying to figure out the next leg of this AI infrastructure build out and how the companies would be reporting especially the hyperscalers. I mean at the end of the day everything comes down to the capex numbers for 2027 and 2028 and we'll learn about that when they report earnings the hyperscalers and uh uh you know every there is some profit taking right now but uh overall uh I thought the IPO was wellreceived in terms of you know the first day bump that we saw uh in terms of a close and uh everyone the long-term investor tors do think this is a multi-year cycle for memory names and uh even though they are cyclical and there is a fear around peak earnings uh I think on the whole everyone buys into this multi-year buildout for uh AI
It feels increasingly like everyone's taking their cue from the Cosby from what happens in Korea and that the tail is wagging the dog here is that the case mandep I mean when you come in in the morning do you look at what's happening in Korea and say, "Okay, now I have a better picture of what's going to happen globally because that sets the tone every day.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- south korea tech selloff
- ai chip demand
- openai apple lawsuit
- ev charging m&a strategy
- electric vehicle charging scale and profitability
Companies and tickers mentioned
- TSM
- AAPL
- SK Hynix
- Taiwan Semiconductor Manufacturing
- Apple
- OpenAI
- Instavolt
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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