Why do I think it’s still worth buying after SK hynix surged 20%?
1. Clear catalyst: the sector explodes collectively
The direct catalyst for the storage sector to surge across the board is that SK Group Chairman Choi Tae-won bought 3,620 shares of SK hynix on July 30 for the first time. Based on that day’s closing price, the total amount was about 4.8 billion won (about $33.4 million). Previously, his shareholding was 0. This is part of his “responsible management” approach, sending a signal that he’s optimistic about the company’s long-term prospects. Choi Tae-won previously said: “Demand for storage chips will always exist, so the stock price will continue to rise over the long term. Rather than repeatedly buying and selling, it’s better to hold long term.”
2. Fundamentally extremely strong: earnings hit a historic record
SK hynix’s Q2 revenue reached 79.32 trillion KRW, up 257% year over year and up 51% quarter over quarter. Operating profit was 60.54 trillion KRW, up 557% year over year, with an operating margin as high as 76%. In the first half, cumulative revenue first exceeded 100 trillion KRW—an excellent reflection of this current storage super-cycle. HBM4 has already started mass production and shipment in Q2, and production will be expanded in the second half. HBM4E samples were delivered in the first half.
3. Wall Street is highly bullish
On July 30, UBS initiated coverage of SK hynix ADR for the first time with a “Buy” rating. The price target is set at $204, representing 61% upside versus the latest closing price. Daiwa also reiterated a “Buy” rating, arguing that the recent stock price correction has been excessive and suggesting investors buy on dips. A FactSet survey shows that among 40 analysts, the median EPS estimate for SK hynix ADR in 2026 has been revised up to $22.58.
4. Ongoing tight supply-demand dynamics: the price-raising cycle continues
Goldman Sachs experts believe that traditional DRAM prices this year will maintain strong growth of “high double-digit percentages,” and that HBM next year has room for a major price increase—even doubling. All HBM for 2026 has already been sold out, and production plans to meet customer demand have been allocated. The company has signed long-term supply agreements (LTA) with about 10 core customers on average, locking in mid-to-long-term demand. Management has clearly stated that it has not seen any signs of AI investment slowing down, and that AI infrastructure investment will remain solid even after 2027. Tight supply-demand balance is expected to persist long term. Any pullback is an opportunity to build positions in an AI storage leader.
#TradFi晒单
1. Clear catalyst: the sector explodes collectively
The direct catalyst for the storage sector to surge across the board is that SK Group Chairman Choi Tae-won bought 3,620 shares of SK hynix on July 30 for the first time. Based on that day’s closing price, the total amount was about 4.8 billion won (about $33.4 million). Previously, his shareholding was 0. This is part of his “responsible management” approach, sending a signal that he’s optimistic about the company’s long-term prospects. Choi Tae-won previously said: “Demand for storage chips will always exist, so the stock price will continue to rise over the long term. Rather than repeatedly buying and selling, it’s better to hold long term.”
2. Fundamentally extremely strong: earnings hit a historic record
SK hynix’s Q2 revenue reached 79.32 trillion KRW, up 257% year over year and up 51% quarter over quarter. Operating profit was 60.54 trillion KRW, up 557% year over year, with an operating margin as high as 76%. In the first half, cumulative revenue first exceeded 100 trillion KRW—an excellent reflection of this current storage super-cycle. HBM4 has already started mass production and shipment in Q2, and production will be expanded in the second half. HBM4E samples were delivered in the first half.
3. Wall Street is highly bullish
On July 30, UBS initiated coverage of SK hynix ADR for the first time with a “Buy” rating. The price target is set at $204, representing 61% upside versus the latest closing price. Daiwa also reiterated a “Buy” rating, arguing that the recent stock price correction has been excessive and suggesting investors buy on dips. A FactSet survey shows that among 40 analysts, the median EPS estimate for SK hynix ADR in 2026 has been revised up to $22.58.
4. Ongoing tight supply-demand dynamics: the price-raising cycle continues
Goldman Sachs experts believe that traditional DRAM prices this year will maintain strong growth of “high double-digit percentages,” and that HBM next year has room for a major price increase—even doubling. All HBM for 2026 has already been sold out, and production plans to meet customer demand have been allocated. The company has signed long-term supply agreements (LTA) with about 10 core customers on average, locking in mid-to-long-term demand. Management has clearly stated that it has not seen any signs of AI investment slowing down, and that AI infrastructure investment will remain solid even after 2027. Tight supply-demand balance is expected to persist long term. Any pullback is an opportunity to build positions in an AI storage leader.
#TradFi晒单