Hong Kong storage concept stocks surge

When Google’s earnings report came out, my first reaction wasn’t to look at GOOGL—I went straight to the Hong Kong listed storage sector.

Why?
Alphabet’s Q2 cloud business grew 82%, and capital expenditures rose sharply. The money is all being poured into AI data centers. What do AI data centers need? Compute chips, and a large amount of high-bandwidth HBM memory. SK hynix is currently the most important HBM supplier, with Samsung right behind. As long as these big tech giants—Google, Microsoft, Meta—continue burning capital on AI infrastructure, memory demand won’t stop.

The most direct way to express this theme in Hong Kong stocks is two leveraged ETFs:
Southern 2x long SK hynix
At its craziest in May, it surged nearly 22% in a single day. Even when the market reversed in June, it still fell 18%+; volatility is extremely high, so it’s not something you can just hold and sleep on. But if you have a clear view of the demand for AI infrastructure, this is the purest HBM exposure in Hong Kong.

Southern 2x long Samsung Electronics
Samsung is simultaneously developing HBM and NAND flash. The logic is a bit more spread out, but together with the SK hynix ETF, they form a good pair to observe—seeing both should help read the market’s sentiment toward the entire storage industry.

Revolution Technologies, GalaxyCore
These two A-share names are also frequently mentioned within Hong Kong trading scope. The former makes memory interface chips, while the latter makes NOR Flash—more China-local storage supply-chain exposure. They benefit from the domestic substitution narrative, but short-term volatility isn’t as similar to Korea-based storage. You should look at them separately.

My own view on this sector is moderately bullish in the short term, but you need to manage position sizing.

The reason is that Google’s capex guidance is real numbers. Before Micron’s Q2, it also gave a strong outlook for AI memory demand. There’s no sign that this chain has broken. But the history of storage stocks tells you: when they rally, they can rise viciously; when they fall, they can fall just as brutally. The performance from May to June is a complete lesson—within one month, it went from up 22% to down 18%, hitting you back and forth twice.

So I won’t hold a heavy position in the 2x ETFs overnight. But if the market keeps following this line—AI big tech continues to burn money → HBM demand doesn’t decrease → SK hynix achieves gains in both volume and pricing—then this sector likely has more to watch in the short term.

Key risks: if, in the next round of earnings reports, some big companies start saying AI investment returns are below expectations and plan to slow capital expenditures, this entire logic chain will be repriced from the beginning. Keep an eye on earnings season; everything else is noise.

DYOR Not investment advice