SK Hynix Jumps 250% as Analysts Say AI-Driven Rally Is Only Halfway Done
Updated
Updated · CNBC · May 27
SK Hynix Jumps 250% as Analysts Say AI-Driven Rally Is Only Halfway Done
15 articles · Updated · CNBC · May 27
SK Hynix has surged more than 250% this year, and analysts say the AI-fueled run may still be only halfway complete despite the stock already lifting the chipmaker above a $1 trillion market value.
6-7 times forward earnings for SK Hynix and Samsung versus about 12 times for Micron underpins that view, as earnings upgrades have outpaced share-price gains and made valuations look cheaper rather than stretched.
$725 billion in projected Big Tech capital spending and demand for HBM, DRAM and NAND that still exceeds supply are seen extending the memory upcycle, with overcapacity unlikely for at least a couple of years.
40% of the Kospi is now concentrated in SK Hynix and Samsung, raising worries about market concentration and vulnerability to supply-chain shocks or slower data-center spending even as investors remain broadly bullish.
Beyond its stock price, how is the SK Hynix-NVIDIA-TSMC alliance reshaping global tech power and geopolitical risk?
Is SK Hynix's massive bet on AI memory a masterstroke or the prelude to a historic industry downturn?