SK Hynix shares have come under pressure in recent days, though brokerages say the company’s core business outlook has not changed.
According to Odaily, the stock fell 8.79% on Aug. 3. It then recovered modestly on Aug. 4 and Aug. 5, rising 0.64% and 5.77%, before dropping 10.37% on Aug. 6 to close at 1.495 million won. On Aug. 7, the shares fell another 4.88% to finish at 1.422 million won.
As market volatility picked up, SK Group released an advertisement that cited founder Chey Jong-hyon, who said, “Despair and hope are two sides of the same coin, and despair can be turned into hope as easily as turning over one’s hand.” The group recast that line for the current cycle: “Anxiety and expectation in the AI era are also two sides of the same coin, and anxiety can be turned into expectation.” The message was meant to show confidence in the long-term development of the AI industry.
Brokerages keep attention on HBM4 and LTAs
Securities firms said the recent swings in the share price have not altered SK Hynix’s fundamentals. Their focus remains on the company’s lead in HBM4 and on the earnings stability tied to long-term agreements, or LTAs.
Hyundai Motor Securities points to HBM4 sales and DRAM pricing
Hyundai Motor Securities expects SK Hynix’s third-quarter DRAM and NAND bit growth to reach 9.7% and 1.5%, respectively. The firm said that as HBM4 sales make a larger contribution, DRAM average selling price, or ASP, could still rise 19.9% quarter over quarter even if the share of long-term agreements increases.
The brokerage also said companies including OpenAI and Anthropic are moving ahead with self-built hyperscale AI data centers and plan to fund those projects through IPO-related financing. Even if some large technology companies later adjust capital expenditure, or Capex, that could be offset by demand from other AI infrastructure projects.
On concerns about competition from China’s ChangXin Memory Technologies, or CXMT, Hyundai Motor Securities said the chance that major companies such as Apple will adopt Chinese memory chips remains low, given tighter U.S. export restrictions on semiconductor equipment and Micron’s expanding investment in the United States.
SK Securities says HBM demand is still outpacing available supply
SK Securities also maintained a positive view on SK Hynix’s competitive position. The firm said the company remains well placed because of its lead in HBM, its relationships with major North American GPU companies, and AI-driven demand for LTAs.
According to SK Securities, the HBM supply-demand fulfillment rate is still below 70%. It said the main value of LTAs lies in a mutual lock-in structure between customers and suppliers, which helps support continued profitability and steadier earnings.
Valuation rerating and shareholder return remain in focus
SK Securities added that valuation rerating steps such as a potential ADR listing, along with dividend income from the sale of SPC assets related to Kioxia, could bring forward the company’s target of reaching 100 trillion won in net cash.
The firm said that as shareholder return policy becomes clearer over time, the market may reassess the value of the LTA model and assign a higher valuation to SK Hynix.
The report cited Daum as the source.