Investment Pitches

Pitch Summary:
TKO Holdings (TKO) is the owner and operator of the two leading combat sports content assets – the UFC and WWE. We have been investors in TKO for a little over one year over which time the share price has appreciated over 80%. Our investment proposition is based on the increased demand for sports media rights from traditional broadcasters/cable as well as global streaming platforms (Netflix, YouTube, Amazon, Apple). These media companies see live sport as crucial to maintain and grow viewer numbers and/or subscribers. Given the year-round volume and flexibility of both the WWE and UFC, TKO’s assets are well positioned to benefit from this trend. In addition, TKO benefits from a powerful flywheel where in addition to media rights, it monetises its content via sponsorships and live events. Over the past year, TKO has renewed most of its important media deals at rates well above previous deals. We remain enthusiastic shareholders.

BSD Analysis:
TKO’s moat is premium sports IP with artificial scarcity—there are only so many global combat sports brands. UFC and WWE monetize attention through media rights, live events, and sponsorships with remarkable margin efficiency. Demand is resilient because fandom is habitual, not discretionary. Pricing power sits with broadcasters, not consumers, which stabilizes economics. Star risk exists, but the brands outlive individual athletes. Integration discipline matters as cost synergies are harvested. Regulatory and reputational risks never disappear in combat sports. The bull case is media-rights inflation and global expansion. TKO compounds by owning leagues others can’t replicate.

Pitch Summary:
Gossamer Bio's approach with seralutinib, an inhaled TKI, has shown mixed results in its phase 2 trials. While the study demonstrated a statistically significant reduction in the PVR biomarker, the functional benefit in 6MWD was minimal. The market's reaction to the data was negative, as the PVR reduction was considered underwhelming compared to established benchmarks. The imbalance in WHO Class between study arms and the relatively low mean baseline dynes raise concerns about the applicability of the results to the broader patient population. The company's reliance on subgroup analyses to support efficacy claims is viewed skeptically, given the small sample sizes and lack of compelling evidence in less severe patients.

BSD Analysis:
The trial design and data interpretation present several challenges. The imatinib hypothesis, which underpins the development of seralutinib, has not been convincingly replicated in other TKIs, raising questions about its validity. The high dropout rates and safety concerns associated with imatinib further complicate the narrative. Gossamer Bio's focus on more severe patient subgroups might not align with the current treatment paradigm, where most patients have lower PVRs. The correlation between PVR and 6MWD, despite potential COVID-19 confounders, suggests some reliability in the data, but the overall efficacy remains questionable. The company's valuation and future prospects hinge on the success of ongoing trials and the ability to address these concerns.

Pitch Summary:
Kelly Partners Group (KPG) is well-positioned to adapt to the evolving landscape of professional services, particularly with the rise of AI. While AI poses a threat to routine revenue streams by automating tasks like data entry and basic compliance, KPG's unique model and strategic focus on high-value services such as strategic advisory and complex tax planning offer significant growth potential. The company's decentralized yet supported network allows for quick AI adoption, enhancing efficiency and enabling the offering of premium services. Despite short-term volatility due to AI fears, KPG's financial resilience and growth strategy suggest a positive long-term trajectory.

BSD Analysis:
KPG's proactive reinvestment in intellectual property and central resources positions it to capitalize on AI-driven efficiencies, potentially doubling profits and reducing working capital. The company's adaptability is further evidenced by its recent acquisitions, which bolster its trajectory towards becoming a top-10 accounting firm in Australia. Regulatory changes increasing complexity in the field may counteract AI's automation impact, driving demand for expert services. KPG's ability to leverage these trends, coupled with its strong financials and growth strategy, suggests it could emerge stronger from technological disruptions, turning them into catalysts for innovation and expansion.

Pitch Summary:
Tucows experienced volatility amid execution concerns in its Ting Mobile and fiber businesses. However, the company retains valuable domain registration assets with recurring cash flows and optionality in its telecom infrastructure investments. We believe the valuation reflects excessive pessimism relative to its asset base and long-term growth prospects.

BSD Analysis:
Tucows is entering 2026 with a strategic focus on transitioning to a "capital-light" business model, highlighted by the planned divestiture of its Ting fiber business. The company’s core segments—Domain Services and Wavelo (platform software)—are currently operating profitably and are well-positioned to scale with high-margin recurring revenue. Management has issued a 2026 adjusted EBITDA guidance of 52 to 58 million dollars for the remaining businesses, signaling continued operational improvement. However, the firm still carries a substantial debt load of nearly 630 million dollars, which remains a primary concern for the market as interest rates stabilize. The success of the investment thesis depends entirely on the execution of the Ting divestiture and the company's ability to deleverage and re-focus on its scalable software and domain assets.

Pitch Summary:
Naked Wines has been repositioning its customer acquisition strategy and cost structure following a challenging post-pandemic period. Management’s renewed focus on profitability and customer lifetime value has begun to show early signs of improvement. We believe the stock trades at a significant discount to normalized earnings potential if marketing efficiency and retention trends stabilise.

BSD Analysis:
Naked Wines is executing a "smaller but materially more profitable" strategy in 2026, with management projecting annual profits at the top end of its guidance despite a significant 14 to 20 percent decline in revenue. This successful pivot is the result of disciplined cost management and a focus on its most loyal, high-margin customer base, moving away from the aggressive customer acquisition spend of previous years. Analysts have reacted positively to the profit upgrade, with some broker tips suggesting over 120 percent price upside as the company reaches a critical inflection point of sustained profitability. The firm’s inventory liquidation efforts are nearing completion, which should significantly improve the balance sheet and provide the capacity for a return to moderate growth in 2027. For contrarian investors, Naked Wines offers a high-risk, high-reward turnaround story in the evolving direct-to-consumer beverage space.

Pitch Summary:
Associated British Foods benefited from improving trading conditions at Primark and stabilisation in its grocery and ingredients businesses. The company’s strong balance sheet and diversified earnings base provide resilience amid economic uncertainty. We believe the market undervalues the quality of its assets and long-term growth potential.

BSD Analysis:
Associated British Foods (ABF) presents a complex but resilient investment case in 2026, blending its dominant Primark retail division with a diverse global grocery and ingredients portfolio. Primark continues to see strong growth in the United States (up 12 percent) and the UK, effectively navigating a challenging consumer market through its "value-first" proposition. While the sugar and agriculture segments have faced temporary revenue declines due to commodity price fluctuations, the group’s massive 678 million dollar free cash flow provides a significant cushion for future expansion. Management is maintaining a balanced capital allocation strategy, combining a 3.25 percent dividend yield with a 44 percent payout ratio to reward shareholders while funding Primark's international rollout. Despite a "Hold" consensus from analysts wary of valuation multiples, ABF's operational diversity and robust balance sheet make it a cornerstone holding in the packaged foods and retail sectors.

Pitch Summary:
DCC continues to execute well across its diversified portfolio of businesses, generating steady free cash flow and disciplined returns on capital. While near-term macro concerns have weighed on sentiment, we believe the company’s resilient cash flows and acquisition-led growth strategy support long-term value creation.

BSD Analysis:
DCC is currently undergoing a strategic re-rating as it successfully completes a 600 million pound share buyback, significantly reducing its share count while pivoting toward high-growth energy transition segments. The company’s 2026 outlook is supported by a "good" operating profit growth forecast, as its expansion into biofuels and solar solutions begins to elevate its leadership in the cleaner energy space. While analysts have recently trimmed price targets to reflect a softer revenue outlook in chemical distribution, the firm's core business services group remains a resilient cash flow generator. Investors are increasingly viewing DCC not as a legacy conglomerate, but as a modern energy and healthcare services provider with a disciplined approach to capital allocation. With a forward P/E that has moderated to a more attractive 16.5 times, the stock offers a compelling entry point for value-oriented portfolios.

Pitch Summary:
CHAPTERS Group AG performed strongly as investors increasingly recognised the value of its decentralized acquisition model and disciplined capital allocation approach. The company continues to acquire profitable, niche software businesses at attractive multiples and integrates them with a long-term ownership mindset. We believe the company is building a durable compounding platform similar to other successful European serial acquirers.

BSD Analysis:
CHAPTERS Group is executing a disciplined "buy-and-build" strategy in the European SME sector, recently completing a 40 million euro bond tap to fund its active M&A pipeline. The company’s 2026 thesis is centered on the realization of synergies from its merger with Expatrio and the continued organic growth of its Financial Technologies segment. Management expects mid-single-digit revenue growth and low-teens EBITDA growth, supported by a decentralized operating model that empowers niche market leaders. The firm’s long-term, permanent capital approach differentiates it from traditional private equity, appealing to family-owned businesses looking for stable succession. For investors, CHAPTERS offers a high-growth, diversified exposure to the resilient "Mittelstand" economy in Germany and broader Europe, backed by a proven management team with deep M&A expertise.

Pitch Summary:
Virgin Wines was a meaningful contributor during the quarter as operational improvements and cost discipline began to translate into stronger profitability and cash generation. Management continues to focus on customer retention and improving marketing efficiency, with subscription economics stabilising after a volatile post-pandemic period. We believe the market underestimates the durability of its recurring revenue model and the operating leverage embedded in the business as volumes recover.

BSD Analysis:
Virgin Wines is successfully outperforming the broader online drinks market in 2026, reporting market share gains and a 40 percent surge in customer acquisition during the critical Christmas trading period. The company’s strategic pillars—focused on commercial partnerships (such as Moonpig) and its high-margin "Warehouse Wines" brand—are driving a return to profitable growth. Despite the UK's challenging consumer landscape and imminent duty rises, Virgin Wines remains debt-free with a strong net cash position of over 10 million pounds. Management is betting heavily on its new mobile app to drive higher customer lifetime value and engagement among its loyal WineBank members. With a resilient direct-to-consumer model and an agile sourcing strategy, the company is well-positioned to deliver meaningful growth as it consolidates its lead in the UK's premium online wine sector.

Pitch Summary:
Not holding IDEXX Labs (+6%), a maker of veterinary products and a sizable benchmark component, also hurt. IDEXX is a solid and consistent business, and in its latest quarterly update, reported in November, it delivered strong results that materially outperformed expectations. But we don't think the current growth is sustainable over the longer term and prefer other investments in the mid-cap growth universe.

BSD Analysis:
IDEXX Laboratories enters 2026 with strong momentum, recently reporting fourth-quarter 2025 earnings of $3.08 per share which comfortably beat Wall Street consensus. The company is successfully leveraging its CAG Diagnosticssegment to drive 10% organic recurring revenue growth, outperforming broader animal health sector levels. For 2026, management has issued an optimistic sales forecast of up to $4.72 billion, led by a record instrument placement cycle including the new inVue Dx platform. While the stock saw a technical dip following its earnings release, the firm’s gross margins have expanded to 60.3% due to effective net price realization and reference laboratory productivity. Management is focusing on the "aging pet population" trend, which is driving higher diagnostic frequency and long-term brand loyalty among veterinarians. For investors, IDEXX remains a high-quality, recession-resistant play on the structural humanization of pets globally.

Pitch Summary:
Conversely, a larger-than-benchmark position in Axon (-21%) was the biggest detractor from relative performance. The company develops products and technology for the law enforcement industry and recently has expanded into AI-driven products that enhance police productivity. Axon's latest quarterly results, reported in November, disappointed investors. Though revenue exceeded forecasts, earnings fell short of analysts' expectations, largely due to weaker-than-expected margins. We saw this as a temporary setback, and Axon was our No. 2 holding and No. 3 overweight at year-end.

BSD Analysis:
Axon Enterprise enters 2026 with its high-growth ecosystem in full effect, boasting a 41% increase in Annual Recurring Revenue (ARR) to $1.25 billion and a massive $11.4 billion backlog. The company is successfully transitioning from a Taser manufacturer into a comprehensive cloud-software powerhouse for public safety, connecting hardware and software through its AI-driven platform. For 2026, the investment narrative is defined by the global adoption of the TASER 10 and the expansion of its body camera network into international markets. While the stock carries a premium valuation with a price-to-free-cash-flow ratio exceeding 300, management’s consistent 31% sales growth justifies the "growth at any price" sentiment among bulls. The company is prioritizing its goal to cut police-related deaths by 50% by 2033, a mission that creates high switching costs and a formidable competitive moat. For investors, Axon offers a unique, socially impactful tech play with a highly predictable, subscription-based revenue model.

Pitch Summary:
An overweight in Lumentum Holdings (+127%), a provider of optical and photonic components used in high-speed communications applications, also helped. In early November, the company reported better-than-expected quarterly earnings, with results especially strong in its Cloud & Networking segment, which represents about 80% of the business. We increased the position during the past three months.

BSD Analysis:
Lumentum Holdings enters 2026 delivering a "standout" performance, with 65% year-over-year revenue growth and a non-GAAP operating margin that expanded by over 1,700 basis points. The company is successfully scaling its Optical Circuit Switches (OCS) to meet extraordinary customer demand, recently reporting a backlog exceeding $400 million. For 2026, the investment case is anchored by the ramp-up of co-packaged optics (CPO), supported by a new multi-hundred-million-dollar order for delivery in 2027. Management expects Q3 2026 revenue to reach up to $830 million, representing a 25% sequential increase as the AI and cloud data center markets accelerate. While the broader networking market remains competitive, Lumentum’s deep technological moat in laser and photonic solutions provides significant pricing power. For investors, Lumentum offers high-leverage exposure to the "physical layer" of AI infrastructure, where hardware constraints are the primary bottleneck for growth.

Pitch Summary:
Among individual stocks, non-benchmark stakes in capital goods firm ATI (+41%) were the top contributors. ATI operates in the medical and energy markets, but the firm primarily designs and manufactures components for aerospace and defense firms, which represent about two-thirds of its overall business. In late October, the company reported solid revenue growth and improved profitability for the third quarter, helped by sales in high-margin aerospace products. In its financial guidance, ATI projected strong earnings growth for 2025 and Q1 2026.

BSD Analysis:
ATI Inc. is projecting a robust 2026 with adjusted EBITDA targeted at a milestone $1 billion, reflecting a 16% year-over-year increase driven by aerospace and defense momentum. The company is successfully leveraging its proprietary nickel alloys—producing six of the seven most advanced jet engine alloys globally—to capture increasing content in next-generation engines. For 2026, management expects the Aerospace & Defense portfolio to represent over 70% of total sales, providing a highly predictable and high-margin revenue stream. The company is aggressively investing $240 million in new VIM furnaces and remelt equipment to drive an incremental $350 million in revenue by mid-2028. While insider selling and elevated P/E multiples are watchpoints, the firm’s 17.5% three-year revenue growth highlights its superior execution. Investors view ATI as a mission-critical supplier to Pratt & Whitney and Boeing, offering a unique play on the structural recovery of global aviation.

Pitch Summary:
Among individual stocks, non-benchmark stakes in tech hardware maker Coherent (+71%) were the top contributors. Coherent manufactures precision optical components and coatings. In early November, the company reported quarterly results that significantly exceeded consensus expectations, driven by a surge in AI infrastructure investment and soaring demand for the firm's products in advanced semiconductor manufacturing. To concentrate on that business, Coherent recently sold its aerospace and defense division to Advent for $400 million.

BSD Analysis:
Coherent Corp. enters 2026 with an exceptionally bullish outlook, recently reporting a 17% year-over-year revenue increase to $1.58 billion driven by surging demand for AI data center networking. The company is successfully leveraging its leadership in 800G and 1.6T transceivers to capture the massive build-out of next-generation AI clusters. For 2026, management is prioritizing debt reduction, having already lowered its leverage ratio to 1.7x from 2.4x a year ago. The investment case is further strengthened by a non-GAAP gross margin target of over 42%, reflecting superior operating leverage as the product mix shifts toward high-value optical components. While the divestiture of its aerospace and defense business has reduced total revenue, it has sharpened the firm’s focus on the high-growth photonic technology market. Analysts maintain a "Buy" consensus, viewing Coherent as a primary "picks-and-shovels" play for the industrialization of the AI revolution.

Pitch Summary:
In recent years, we experienced this firsthand during the rapid repricing in the offshore energy sector, when stocks such as Tidewater moved from deeply discounted levels to reflecting a large portion of expected earnings growth in a matter of months. The rapidity of the move surprised many, but the groundwork had been laid by years of underinvestment and consolidation. Offshore energy services provide a current example of this non-linear runway. Following a prolonged downturn after the last commodity cycle, offshore oil service companies were widely viewed as uninvestable. Years of underinvestment, restructuring, and bankruptcies dramatically reduced capacity and forced the surviving companies to rebuild with far more conservative balance sheets. Between 2020 and 2024, offshore services began to recover as the consequences of that reset became clear. The extended downturn permanently removed a meaningful portion of global supply. Rightsizing and operational discipline drove substantial efficiency gains, making many offshore projects economic even at oil prices well below recent levels. The result has been a sharp tightening in the supply-demand balance. Companies such as Tidewater that emerged from restructuring with improved balance sheets were positioned to benefit disproportionately. With consolidated fleets, restored capital discipline, and replacement costs far above asset values, pricing power returned to a sector long characterized by extreme cyclicality. The volatility in Tidewater’s share price highlights the exaggerations created by modern fund flows. We reduced exposure as the stock surged above $100, while the company itself aggressively repurchased shares at an average price near $39 in early 2025. Throughout this period, Tidewater has continued to generate double-digit free cash flow yields and reinvest that capital to increase per-share value. As industry activity continues to build against a constrained supply base, we believe earnings will reaccelerate and market perception will once again be forced to adjust.

BSD Analysis:
Tidewater Inc. is navigating a "high-utilization" cycle in 2026, with vessel utilization rates climbing toward 80% as offshore oil and gas exploration activity intensifies globally. The company is the primary beneficiary of a multi-year recovery in offshore drilling, leveraging the world’s largest fleet of OSVs to drive significant day-rate expansion. For 2026, the investment thesis is anchored by a significant improvement in free cash flow, which is being prioritized for debt reduction and potential shareholder returns. While the company still carries a notable debt load, the structural undersupply of high-specification vessels provides Tidewater with formidable pricing power. Management is focusing on the "large-vessel" segment, where demand is most acute in markets like the Gulf of Mexico and West Africa. As offshore projects move into full-scale production, Tidewater’s role as an essential service provider offers a resilient earnings floor for the current cycle.

Pitch Summary:
As mentioned, we have a croupier basket, where many of our stock exchange and brokerage positions are lumped into the Emerging Markets category. While Marex is headquartered in the UK, itself an Emerging Market these days, I’ve chosen to break MRX out separately, as so much of the business focuses on trading solutions for mid-market commodities firms, hedge funds and futures speculators in the Developed Markets. Marex continues to take market share from bulge bracket firms who are unable to offer competitive levels of services to mid-market firms, while consistently purchasing smaller players who cannot afford the increased compliance costs of participating in a global market. My view is that in the increasingly volatile and financialized markets of the future, CFOs will feel a need to hedge not just commodity risks, but currencies, interest rates, freight rates, weather derivatives and all sorts of other products that may not even exist today. As the CFO, you get a large bonus for hedging correctly, and few penalties for hedging poorly, since Adjusted EBITDA tends to adjust the losses away. With retail investors increasingly fixated on gambling, why shouldn’t the C-Suite do the same?? Meanwhile, Marex trades at a high single-digit 2026 estimated earnings multiple, has grown earnings at an impressive rate, and has consistently earned unusually high returns on equity, despite constantly reinvesting in the business. I see this as something of a long-term compounder that overlaps in many of my favorite themes, with many tailwinds and opportunities to continue to consolidate a sector with few scale competitors for M&A opportunities.

BSD Analysis:
Marex Group enters 2026 with strong organic momentum, recently achieving a "Buy" consensus from analysts who cite its dominant position in the global commodity and energy trading markets. The company is successfully leveraging its Agency and Execution segment to drive double-digit revenue growth, supported by a robust pipeline in its clearing business. For 2026, management has raised its earnings expectations, betting on the continued volatility in global energy markets to fuel demand for its specialized financial services. While high interest rates have created some headwinds for profit growth, Marex’s geographic expansion into the Americas and Asia is effectively diversifying its revenue streams. The company’s focus on new product launches and technology-driven trading solutions provides a scalable platform for future market share gains. For investors, Marex offers a unique, capital-efficient entry into the infrastructure of global commodity markets.

Pitch Summary:
JOE owns approximately 167,000 acres in the Florida Panhandle. It has been widely known that JOE traded for a tiny fraction of its liquidation value for years, but without a catalyst, it was always perceived to be “dead money.” Over the past few years, the population of the Panhandle has hit a critical mass where the Panhandle now has a center of gravity that is attracting people who want to live in one of the prettiest places in the country, with zero state income taxes and few of the problems of large cities. The oddity of the current disdain for so-called “value investments” is that many of them are growing quite fast. I believe that JOE may grow revenue at a rapid rate for the foreseeable future, with earnings growing at a much faster clip. Meanwhile, I believe the shares trade at an attractive multiple on Adjusted Funds from Operations (AFFO), while substantial asset value is tossed in for free. Besides the valuation, growth, and high Return on Invested Capital (ROIC) of the business, why else do I like JOE? For starters, land tends to appreciate rapidly during periods of high inflation. More importantly, I believe we are witnessing a massive population migration as people with means choose to flee big cities for somewhere peaceful. I suspect that every convulsion of urban chaos and/or tax-the-rich scheming will launch JOE shares higher, and it will ultimately be seen as the way to “play” the stream of very wealthy refugees fleeing for somewhere better.

BSD Analysis:
St. Joe Company enters 2026 as a premier play on Florida’s structural migration trends, transitioning from a land-heavy developer into a high-margin recurring revenue engine. The company is successfully leveraging its massive 168,000-acre land holdings in the Florida Panhandle to scale its residential, hospitality, and commercial segments simultaneously. For 2026, the investment case is bolstered by the maturation of key lifestyle communities and the expansion of its hotel portfolio, which currently features over 1,200 rooms. Management is focusing on high-margin leasing and club memberships to drive cash flow stability and reduce the cyclicality traditionally associated with real estate development. While interest rate volatility remains a factor, the firm’s low-cost basis in its land provide a significant competitive moat and pricing power. Investors view St. Joe as a "real asset" powerhouse with a long runway for compounding value through the urbanization of Northwest Florida.

Pitch Summary:
Our biggest position is meant to be a boring American life insurer trading at a P/E of 4. In the case of Jackson we have had some positive growth surprises in RILA sales in the past, and now they are also partnering with TPG. By partnering with a large global alternative asset manager, they can widen their product range and are expected to deliver better margins on their products. The stock has gone up over 20% on the back of this development.

BSD Analysis:
Jackson Financial has entered a landmark strategic partnership with TPG Inc. in early 2026, which includes a $500 million equity investment from TPG. This partnership allows Jackson to leverage TPG’s private credit platform to support the "capital-efficient" growth of its fixed and fixed-indexed annuity sales. The company has also established Hickory Re, a new captive reinsurer, to optimize its spread-based business. For 2026, Jackson intends to utilize its increased capital generation to sustain its robust share repurchase program and dividend yield, which remains a core draw for value investors.

Pitch Summary:
Gravity continues to produce bestsellers in their home markets, this time topping the app download charts with “Ragnarok: New World.” The bigger news is the changes in the boards of their controlling shareholder: GungHo Entertainment. This company holds 60% ownership of Gravity. Their management has been OK with Gravity letting their enormous cash reserves sit idle, but that is about to change as the GungHo CEO is out and activist investors have secured spots in the board. They are now pushing for higher dividends, which can basically only come from Gravity paying dividends to GungHo. Once Gravity starts paying out dividends, some level of repricing should occur. Since the changes in the board Gravity has already appreciated over 20%.

BSD Analysis:
Gravity enters 2026 with a conservative balance sheet featuring KRW 610 billion in cash and virtually zero debt. The 2026 roadmap is defined by a heavy pipeline of Ragnarok-based sequels, including Ragnarok 3 and Ragnarok Libre, intended to revive growth after a period of stabilization. While the stock trades at a discount due to its heavy reliance on a single IP, management is focusing on expanding its live-service operations in Japan and Latin America. Investors view Gravity as a high-margin "cash cow" that is prioritizing internal IP development over aggressive M&A or capital returns.

Pitch Summary:
Another stock that is benefiting extraordinarily from shortages is SK Hynix. While most attention has gone to Nvidia, people have overlooked the bottleneck in chips used for their graphics processors. SK Hynix is one of the three prominent producers of those frontier chips, while their legacy chips are also experiencing shortages. This has led to price hikes of 70%-100% following a moment when many investors were expecting a downturn in what tends to be a highly cyclical market. SK Hynix is now up over 400% since we first bought and up almost 60% since our last Investor Letter.

BSD Analysis:
SK Hynix is the clear leader in the 2026 AI memory market, with DRAM supply remaining extremely tight due to surging HBM (High Bandwidth Memory) demand. The company is benefiting from a structural shift where standard DRAM production is being sacrificed to prioritize high-margin AI memory packaging. For 2026, analysts forecast a global NAND capacity drop of 40%, further tightening the market and keeping average selling prices (ASPs) sticky. SK Hynix’s technology roadmap is now almost entirely shaped by data center and automotive applications, rather than the volatile consumer PC or smartphone markets.