SK Hynix (NASDAQ: SKHY) shares closed at $151.03, down 2.17% on Wednesday, despite a wave of bullish analyst coverage following the company’s recent U.S. listing. The decline occurred amidst a broader semiconductor selloff, yet analysts remain optimistic about long-term demand for AI memory chips.
Although the stock remains below its July listing price, multiple brokerages maintained positive outlooks based on SK Hynix’s strong position within the high-bandwidth memory (HBM) market and the growing demand driven by artificial intelligence infrastructure projects.
Wall Street Begins Coverage With Positive Ratings
At least six research firms initiated coverage of SK Hynix’s U.S.-listed American depositary receipts with buy-equivalent ratings. Analysts highlighted the company’s leadership in HBM chips, essential components in AI accelerators and advanced data center hardware.
Rosenblatt Securities set the highest price target at $320, while Cantor Fitzgerald initiated coverage with an Overweight rating and a $300 target. Other firms noted that the U.S. listing could help close the valuation gap between SK Hynix and its American counterparts.
Investor interest in companies supplying AI infrastructure continues to rise, as reported by Bloomberg. Analysts from William Blair commented that “the U.S. listing provides an opportunity for SKHY shares to re-rate closer to its U.S.-based rivals,” emphasizing the stronger long-term visibility from AI and data center spending.
AI Memory Demand Supports Long-Term Outlook
SK Hynix raised approximately $26.5 billion through its secondary U.S. listing, pricing its ADRs at $149. The company has benefited from strong demand for AI-related semiconductor investments, even as chip stocks have recently faced broader market pressures.
Major technology firms persist in investing heavily in artificial intelligence infrastructure, thereby supporting demand for high-bandwidth memory. Analysts expect global DRAM and NAND demand to outpace manufacturing supply until at least 2029.
Cantor Fitzgerald remarked that SK Hynix could leverage long-term agreements established with large cloud providers seeking additional memory capacity. Analysts further noted that SK Hynix trades at a lower earnings multiple than Micron, despite its advantageous position in AI memory.
Earnings Miss Weighs on Shares Despite Record Profit
The positive analyst outlook follows SK Hynix’s latest quarterly results, which showcased record operating profit but fell short of market expectations due to delays in advanced memory shipments.
Investor caution lingered after the company acknowledged that shipment timing impacted quarterly performance, even as AI demand remained robust.
In a related development, both Samsung Electronics and SK Hynix announced plans to enhance shareholder returns following record quarterly profits. Samsung is reviewing sustainable capital return measures, while SK Hynix intends to unveil a more extensive shareholder return program before year-end.
Reports also indicated that Samsung and SK Hynix have evaluated Chinese semiconductor manufacturing equipment as they prepare for potential changes in U.S. export restrictions, although Samsung later denied testing specific equipment at its Chinese facilities.
