Key Stats for SK Hynix Stock
- Price change for SK Hynix stock in last 1 month: -20%
- $SKHY Stock Price as of Oct. 27: $145
- 52-Week High: $200
- $SKHY Stock Price Target: $243
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What Happened?
SK Hynix (SKHY) stock went up by 7% in pre-market after a record Q3. The company also announced a large payout plan for shareholders.
- Revenue rose 328% from a year ago to 104.6 trillion won ($78.86 billion). Analysts expected 98.34 trillion won. It was the first time quarterly sales topped 100 trillion won.
- Operating profit hit 83.3 trillion won, a record. Analysts expected 76.7 trillion won. A year ago it was 11.4 trillion won.
Operating margin reached 80%. AI demand is the driver as DRAM prices rose in the high 20s percent from the prior quarter.
HBM4, the newest high-bandwidth memory, began full mass production. HBM is the memory used with AI processors.
The shareholder plan is big. SK Hynix will return about 100 trillion won this year, which includes more than 30 trillion won in cash dividends and more than 60 trillion won in buybacks.
The Q3 dividend is 14 trillion won and includes a special payout from its Kioxia investment.
The company also dropped its plan to explore an IPO for its Solidigm unit, citing market volatility and the drop in chip stocks.
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What the Market Is Telling Us About SK Hynix Stock
The market liked the numbers and the outlook. SK Hynix stock in Korea had already doubled this year and was still about half its June peak, so the report brought relief.
Management said it has sold out of HBM and DRAM through 2029. HBM demand is more than double what it can supply, and management expects the memory shortage to last through 2030.
Long-term deals add comfort. SK Hynix has agreements with 14 major customers, which cover more than 50% of 2027 and 2028 capacity.
Management also addressed AI spending worries. The CFO said customers are seeing real business results from AII and said spending would continue.
Analysts were upbeat, though not all agreed. NH Investment & Securities said the results eased many market concerns.
Susquehanna’s Mehdi Hosseini kept a neutral rating on SK Hynix stock and prefers Micron and Samsung.
There are risks as China’s CXMT plans to start making HBM3E chips.
Capital spending will also rise sharply next year. For SK Hynix stock, the test is whether AI demand holds. SK Hynix stock could stay volatile until then.
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So what is SK Hynix stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
