SK Hynix Rebound May Be Short Squeeze, AI Storage Demand Enters New Phase

Garrett Jin, an agent for the '1011 Insider Whale' investment strategy, has published his weekly report analysis, suggesting that the recent rebound in storage chip stocks like SK Hynix may be a short squeeze rather than a confirmation of their underlying fundamentals. In the report, Jin notes that despite some volatility, the market did not see the expected pullback and instead saw stocks sell off due to concerns over funding structures driving up prices. He believes this is more akin to a 'short squeeze' rather than a genuine sign of market confidence in these stocks.

Jin emphasizes that while Korea's leveraged ETF (K-ETF) may appear to be declining, its assets are not being sold off but rather experiencing net value shrinkage due to the high leverage. He points out that investors have actually been buying into these products at a historical high level, with no signs of selling.

The '1011 Insider Whale' strategy has been advising clients to gradually build up positions in storage chip stocks and buy on dips. However, Jin notes that this approach may not be sustainable due to the sector's cyclical nature. With SK Hynix's 2026 production capacity already sold out and Micron's orders covering up to 2028, demand is expected to remain strong until at least the second half of 2027.

Jin also comments on Bitcoin, stating that it continues to meet its bottoming conditions since July and remains in a holding pattern near $60,000.