Alex Sirois
6 min read
Quick Read
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SK hynix (SKHY) has plunged 23% in a month to $130, yet Rosenblatt’s Kevin Cassidy raised his target to $400, implying 208% upside.
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Micron (MU) and Western Digital (WDC) also sank roughly 30% and 27% in a month, yet offer more consensus upside than SK hynix.
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Long-term agreements cover more than 50% of 2027 and 2028 capacity, and management says volumes through 2029 are “effectively sold out.”
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SK hynix (NASDAQ:SKHY) currently trades at $129.66, while the consensus price target sits at $260.64. The spread points to upside of roughly 101%.
SK hynix is the leading supplier of high-bandwidth memory (HBM), the stacked DRAM that feeds AI accelerators in data centers. Its US-listed shares give American investors direct access to the company most tied to the AI memory expansion (we covered seven other companies driving that same expansion, from power to cooling to networking, in a free report here).
One firm sees far more upside than the average. Rosenblatt Securities holds a Street-high target of $400.00, implying about 208% upside. Consensus upside is already substantial.
A Record Quarter Could Not Stop a Brutal Chip Selloff
A Nasdaq selloff that battered Asian chip stocks, including SK hynix and Samsung, did the most damage. The shares have fallen 23.29% over the past month and 14.01% in the past week alone. Commentary also noted competition from China’s CXMT weighing on prices.
Third-quarter revenue and margins expanded sharply. Revenue reached KRW 104.6 trillion, up 328% year-on-year, with an operating margin of 80%. Below the operating line, though, a foreign exchange loss of KRW 11.6 trillion and investment valuation losses of KRW 22.9 trillion pushed pre-tax profit down 58.7% quarter over quarter. Some customers also adjusted HBM specifications, which management framed as proof that “demand is indeed overwhelming supply.”
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