Hey Investors,
Our Best Buys for August are here 🎯
Each month, we look for great companies trading at attractive valuations and highlight three stocks that currently stand out to us.
Since December 2024, we’ve shared 60 Best Buys with our paid members.
Our Best Buys have delivered an average return of 20.3% so far. Several picks have delivered triple-digit returns 🔥
🚀 AMD: picked at $97.35, now +398%
🚀 ASML: picked at $662.63, now +148%
🚀 Alphabet: picked at $168.95, now +121%
We focus on high-quality businesses with strong fundamentals trading at attractive valuations. As Warren Buffett famously said:
“It’s better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
Learn more about how we score stocks on fundamentals in our Fundamental Scoring Framework article.
To keep looking for the best opportunities, we don't pick the same Best Buy two months in a row.
Now let’s dive into our Top 3 Best Buys for August ✨👇
Disclaimer:
The information and opinions provided in this article are for informational and educational purposes only and should not be considered as investment advice. Please consult the general disclaimer for more details.
#3: SK hynix (FRA: HY9H)
Our first Best Buy for August is SK hynix. It's the first time we've included the company in our Best Buys list.
The stock has fallen sharply over the past month and now trades around 45% below the all-time high it reached in June. We believe this has created an attractive buying opportunity.
AI needs more and more high-bandwidth memory (HBM), yet many investors still value memory as a cyclical business. We believe that’s exactly why SK hynix trades at such an attractive valuation.
What Happened?
2026 has been an exceptional year for SK hynix. The stock gained more than 440% before sentiment turned after its record high in June.
Another important milestone was SK hynix’s Nasdaq listing under the ticker SKHY, giving U.S. investors easier access to the stock.
There were several reasons behind the sell-off. Investors became more cautious on AI stocks, and heavy leverage in the Korean market led to margin calls, putting extra pressure on one of the market’s biggest winners: SK hynix.
The company’s Q2 2026 results also fell short of very high expectations. Revenue of $54.6 billion missed the $57.7 billion analysts had expected. That may sound disappointing, but the underlying numbers tell a very different story. Revenue still grew 257% YoY and 51% QoQ. Gross margin reached a record 83%, while operating margin hit an incredible 76%. Read those numbers again.
CEO Kwak Noh-Jung also expects demand for HBM to exceed the company’s production capacity well beyond 2030. That's also why SK hynix is investing billions to expand its HBM production capacity around the world.
Source: SK hynix Newsroom
Memory is still a cyclical business, and another downcycle will eventually come. We believe the global AI buildout will extend this cycle far longer than the market expects.
Why SK hynix Looks Attractive Now
For many years, SK hynix was a highly cyclical business with low margins. We believe that has changed. Our fundamental scoring model gives the company a score of 79, placing it in the 🟢 Quality category and close to 🔵 High Quality.
The valuation depends on which listing you buy. SKHY on the Nasdaq trades at a 30% premium to HY9H in Frankfurt. We prefer the Frankfurt listing and expect that gap to narrow over time. The Frankfurt shares trade at 15.0x trailing earnings, but the forward P/E falls to just 5.8x by the end of this year and 3.6x by the end of 2027.
We believe those are exceptionally low valuations for a company at the center of the AI buildout. That's why Vincent increased his SK hynix position last week.
Only Vincent currently holds a position in SK hynix.
Fundamental Score: 79 🟢 → Quality
Current Stock Price: €970.00
The next two? Two high-quality businesses playing a key role in the future of AI, both trading at attractive valuations.
🤖 One is using AI to unlock its next wave of growth.
🛠️ The other develops technology the entire semiconductor industry depends on.
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