SK Hynix (SKHY) Stock Declines Despite Bullish Wall Street Ratings and AI Memory Optimism

TLDR

• SK Hynix shares fell 2.17% to $151.03 despite positive analyst coverage.
• Six Wall Street firms initiated buy-equivalent ratings after the U.S. ADR listing.
• Analysts expect AI memory demand to support long-term growth in HBM chip sales.
• Cantor Fitzgerald and Rosenblatt set price targets of $300 and $320, respectively.
• SK Hynix plans to increase shareholder returns following record quarterly profits.

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SK Hynix (NASDAQ: SKHY) shares closed at $151.03, down 2.17% on Wednesday, even as Wall Street firms launched coverage with bullish ratings following the company’s recent U.S. listing. The decline came during a broader semiconductor selloff, while analysts continued to point to strong long-term demand for AI memory chips.

Although the stock remains below its July listing price, several brokerages maintained positive views based on SK Hynix’s position in the high-bandwidth memory (HBM) market and growing demand from 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 pointed to the company’s leadership in HBM chips, which are widely used in AI accelerators and advanced data center hardware.

Rosenblatt Securities assigned the highest price target at $320, while Cantor Fitzgerald started coverage with an Overweight rating and a $300 target. Other firms also said the U.S. listing could help narrow the valuation gap between SK Hynix and its American peers.

Bloomberg also reported growing investor interest in companies supplying AI infrastructure as demand for advanced memory continues to expand.

William Blair said “the U.S. listing provides an opportunity for SKHY shares to re-rate closer to its U.S.-based rival.” Analysts also pointed to stronger long-term visibility from AI and data center spending.

AI Memory Demand Supports Long-Term Outlook

SK Hynix raised about $26.5 billion through its secondary U.S. listing after pricing its ADRs at $149. The company benefited from strong demand for AI-related semiconductor investments, even as chip stocks recently faced broader market pressure.

Major technology companies continue investing heavily in artificial intelligence infrastructure, supporting demand for high-bandwidth memory. Analysts expect global DRAM and NAND demand to remain above manufacturing supply through at least 2029.

Cantor Fitzgerald said the company could benefit from long-term agreements signed by large cloud providers seeking future memory capacity. Analysts also noted that SK Hynix trades at a lower earnings multiple than Micron despite its strong position in AI memory.

Earnings Miss Weighs on Shares Despite Record Profit

The positive analyst outlook followed SK Hynix’s latest quarterly results, which showed record operating profit but missed market expectations because of delays in advanced memory shipments.

Some investors also remained cautious after the company acknowledged shipment timing affected quarterly performance despite continued strength in AI demand.

Separately, Samsung Electronics and SK Hynix said they plan to increase shareholder returns following record quarterly profits. Samsung said it is reviewing sustainable capital return measures, while SK Hynix plans to announce a larger shareholder return program before the end of the year.

Reports also indicated Samsung and SK Hynix have evaluated Chinese semiconductor manufacturing equipment as companies prepare for possible changes in U.S. export restrictions. Samsung later denied testing certain equipment at its China facilities.