SK Hynix's U.S.-listed shares have drawn a wave of bullish calls from Wall Street following the company's Nasdaq debut. Cantor Fitzgerald set a price target of $300, more than double Monday's close of $142.72, citing sustained demand for DRAM, NAND and HBM from the ongoing AI infrastructure buildout. Analyst C.J. Muse said bit demand for memory chips could remain well ahead of supply through at least 2029. Nvidia and Alphabet are among customers signing multi-year agreements that lock in volumes, pricing, prepayments and default clauses, giving memory makers better earnings visibility. Bank of America, Stifel and Royal Bank of Canada targets are $250, $240 and $200, respectively. RBC projects operating margin will expand to 86% next year from 76% in the second quarter. Stifel cautions that technology shifts could render products obsolete and that demand is heavily concentrated among a few U.S. hyperscalers. SK Hynix's ADRs started trading on Nasdaq on a when-issued basis on July 10; the company raised roughly $26.5 billion from selling 178 million shares.
Cantor Fitzgerald has given SK Hynix a $300 price target, implying more than 100% upside from Monday's close of $142.72, according to CNBC on Aug. 5. The firm expects AI infrastructure spending to keep lifting demand for DRAM, NAND and HBM.
Analyst C.J. Muse said bit demand for DRAM and NAND could remain well ahead of supply through at least 2029. Customers such as Nvidia and Alphabet are locking in capacity with multi-year contracts, some of which cover purchase volumes, pricing ranges, prepayments and default clauses. That gives memory chip makers stronger earnings power and better order visibility.
Other Wall Street firms are also bullish. Bank of America, Stifel and Royal Bank of Canada have price targets of $250, $240 and $200, respectively. RBC sees operating margin climbing from 76% in the second quarter to 86% next year. Stifel, meanwhile, cautions that key risks include technology shifts rendering products obsolete and demand concentrated among a small group of U.S. hyperscale cloud providers.
SK Hynix's American depositary receipts began trading on Nasdaq on a when-issued basis on July 10. The company raised roughly $26.5 billion by selling 178 million shares, according to Bank of America data.
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