SK hynix Has Slumped Since September: Why Rosenblatt Sees 175% Upside

SK hynix (SKHY) fell 33% in October, outpacing declines in Micron (MU) and the Nasdaq 100, due to concerns over Chinese competition and AI spending. Despite this, the company reported record Q3 revenue of KRW 104.6 trillion, up 328% YoY, with an 80% operating margin, citing strong HBM demand and long-term customer agreements.

SK Hynix (SKHY) shares fell 7.1% to ?1,418,000 on October 30. The company announced substantial shareholder payouts and secured long-term memory chip contracts with 14 major customers. Net cash was ?98.7 trillion at September's end, with total shareholder returns expected to approach ?100 trillion in 2026. The company's GF Score is 76/100, indicating strong performance but weak momentum.

SK Hynix reported a 328% sales increase to $78.9 billion and a 632% operating profit rise to $62.3 billion in Q3. The company expects memory demand to exceed supply through 2030, driven by AI growth. Micron, a competitor, saw its stock rise on the news, with strong Q4 2026 results including a 379% sales increase to $54.2 billion and an 811% EPS rise to $75.52.

SK Hynix (SKHY) reported record Q3 operating profit of 83.3 trillion won ($62.8B), driven by higher DRAM and NAND prices. Management expects tight supply through 2030, with robotics as a long-term demand driver. Tesla (TSLA) adjusted robot chip memory due to shortages. SKHY shares rose 10% post-earnings, with analysts maintaining strong buy ratings and targets up to $300.

SK hynix (SKHY) shares fell to $161 in premarket trading after a 13.30% rise on Wednesday. The company reported record Q3 revenue of KRW 104.62 trillion, up 328% YoY, with an 80% operating margin. SK hynix plans KRW 100 trillion in shareholder returns by 2026, including KRW 30 trillion in dividends. Management expects tight supply through 2030, supporting pricing power. Analysts watch $156.50 as support and $166.06 as resistance.

Seagate (STX) reported Q1 revenue of $4.23B, up 61% YoY, with demand visibility extending beyond 2030. SK Hynix (SKHY) saw record revenue of $74.4B, with DRAM and HBM sold out through 2029. Both companies highlight long-term supply agreements, indicating a multiyear supply squeeze in the memory and storage market.