Investment Rating - The report maintains a "Buy" rating for SK Hynix and Micron, while downgrading Samsung to "Neutral" from "Buy" [5] Core Insights - HBM supply and demand are expected to remain balanced, with a projected gap of 12% in 2025 and 6% in 2026 [2][10] - SK Hynix is gaining a competitive edge in HBM negotiations, securing significant contracts with major clients like AWS and Google [3] - The report forecasts a strong growth in DRAM and NAND bit shipments, with DRAM expected to grow by 17% in Q2 2025 and 11% in Q3 2025 [4] Summary by Sections HBM Supply and Demand - HBM shipments are adjusted to 5.6 billion Gb in 2025 and 8.1 billion Gb in 2026, reflecting a decrease from previous estimates [2] - The report indicates that HBM typically ships into consignment inventories, leading to a lead time of up to 4 months for mature products [2] Market Dynamics - SK Hynix is positioned as a primary supplier for several key products, including HBM3E for AWS and Google [3] - Ongoing negotiations with Nvidia for 2026 procurement units suggest a potential increase in demand for HBM products [3] Pricing and Shipment Forecasts - The report anticipates a 7% increase in blended DDR contract pricing in Q2 2025 and a 3% increase in Q3 2025 [4] - NAND contract pricing is expected to remain flat in Q2 2025 but increase by 3% in Q3 2025 [4] Company Ratings and Price Targets - SK Hynix's price target is raised to Won350k, while Micron's price target is revised to US$155 [5] - Samsung's stock is downgraded to Neutral due to a lack of immediate catalysts for HBM growth [5]