[Featured Stock] YC, 36 Trillion Advantest and Technology 'Top Two'... 'Don't Look Anywhere Else'

YC is rebounding. It appears that an analysis report from a securities firm, suggesting that it can grow alongside Advantest, which has a market capitalization of 36 trillion won, is having an impact.

Hyundai Motor Securities forecasted that Nvidia's annual GPU shipments will increase by 98%, from approximately 3.41 million units this year to 6.74 million units next year. Since the B100 (HBM3E 192GB) is equipped with 2.4 times more HBM compared to the H100 (HBM3 80GB), they expect a surge in HBM demand. They emphasized that AI GPU shipment growth is explosive and stated, "There is no need to look elsewhere."

For OpenAI’s video generation AI ‘SORA,’ released this year, even under very conservative calculations, it is expected to require about 700,000 Nvidia H100 units. This means that a single AI service requires nearly half of the total 1.47 million Nvidia GPUs shipped in 2023. Considering TSMC’s plans to expand production capacity, a strong AI data center investment cycle is expected to continue at least until 2026.

Amid expectations of a sharp increase in HBM demand, the importance of the testing process is also expected to grow. YC, which possesses world-class tester technology, was given a target stock price of 25,000 won. The price-to-earnings ratio (PER) of Advantest was discounted by 30% to 32.3 times and applied to the earnings per share (EPS) estimate. Since YC is expected to supply to customers who will likely have the largest scale of HBM line expansion, it is seen as having significant growth potential.

As of 10:32 AM on the 31st, YC is trading at 15,140 won, up 9.87% from the previous day.

Junyoung Park, a researcher at Hyundai Motor Securities, explained, "The HBM tester developed by YC is an integrated tester equipped with a high-speed inspection function, which is the most difficult feature to implement among memory test functions." He added, "Currently, the only company capable of producing such equipment is Japan’s Advantest."

He continued, "Although various equipment have been localized domestically, it is very rare to localize equipment that approaches the technology level of the global number one company," and assessed, "Since YC developed equipment for HBM, which is expected to become the third product group in the memory industry following DRAM and NAND, long-term growth is also guaranteed."

He analyzed, "The upward revision of the number of HBM equipment deliveries due to expansion and gaining a dominant share in delivery proportions against Japan’s Advantest are factors that increase corporate value," and added, "This is a conservative estimate compared to the number of HBM testers that actual customers are expected to need, considering current production capacity."

Furthermore, he emphasized, "Generally, equipment company expansions can be completed within a few months," and "Considering the delivery proportion in the core business, YC, which has price competitiveness, is likely to have an advantage in the delivery proportion of HBM testers as well."

Researcher Park expressed expectations that "the number of HBM testers to be delivered from June this year to December next year is about 285 units," and "these units will be supplied jointly by YC and Japan’s Advantest." He stressed, "The delivery proportion will depend on future negotiations, but there is a possibility that YC will account for more than half of the share."