[Featured Stock] Approaching DDR5 Prime Time... TLB Emerges as a Beneficiary Stock

[Asia Economy Reporter Nam Seung-ryul] SK Hynix, which announced earnings shock-level results on the 1st, explained in a conference call that "demand for high-capacity products will increase in the Chinese smartphone market, and in the case of servers, there will be business opportunities for the next-generation DRAM, high-capacity DDR5, following the launch of new central processing units (CPUs)." A day earlier, a Samsung Electronics official also stated in a conference call that "high-capacity memory is being adopted in smartphones, PCs, and servers, and the use of AI chatbot ‘ChatGPT’ is spreading, which is positive for memory demand."

Kiwoom Securities and Daishin Securities analyzed in their reports that due to these influences, Tailbee's DDR5 substrate sales are expected to expand. Oh Hyun-jin, a researcher at Kiwoom Securities, forecasted that DRAM companies such as Samsung Electronics, SK Hynix, and Micron, as well as CPU companies like Intel and AMD, are gradually switching DRAM memory modules to DDR5, which will benefit Tailbee. Researcher Oh predicted that Tailbee will achieve sales of 228.1 billion KRW and operating profit of 43.2 billion KRW this year.

Park Kang-ho, a researcher at Daishin Securities, analyzed Tailbee as a company that will substantially benefit from the DDR5 transition. He said, "Due to the influence of Intel's server CPU, Sapphire Rapids, the transition to DDR5 will continue in PCs and servers," and added, "With increased investment related to data centers, data storage capacity is growing, leading to increased SSD demand, which will help Tailbee's growth."