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SK Hynix
(NASDAQ:SKHY)
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Rating:82Outperform
Price Target:
$191.00
▲(19.73% Upside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by very strong financial performance (sharp profitability and cash-flow rebound with conservative leverage) and a highly positive earnings outlook tied to AI memory demand, LTAs, and shareholder returns. Valuation also supports the score with a low P/E. Offsetting these positives, technical signals are mixed and do not show strong bullish momentum.
Positive Factors
HBM4 technology leadership
HBM4 production and shipment execution strengthens SK hynix’s position in the fastest-growing, highest-value memory segment. Stable yields, rising product mix, and customer qualification progress can support differentiated pricing and profitability as AI infrastructure demand expands.
Negative Factors
Highly cyclical profitability
The recent earnings surge may not represent a sustainable normalized level because memory pricing, product mix, and utilization can change materially across the semiconductor cycle. If market conditions weaken, elevated margins and returns could compress, reducing earnings durability despite strong current results.
Read all positive and negative factors
Positive Factors
Negative Factors
HBM4 technology leadership
HBM4 production and shipment execution strengthens SK hynix’s position in the fastest-growing, highest-value memory segment. Stable yields, rising product mix, and customer qualification progress can support differentiated pricing and profitability as AI infrastructure demand expands.
Read all positive factors
SK Hynix (SKHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$775.10B
Dividend Yield0.01%
Average Volume (3M)21.24M
Price to Earnings (P/E)5.4
Beta (1Y)0.53
Revenue Growth209.28%
EPS Growth389.56%
CountryUS
Employees36,042
SectorGeneral
Sector StrengthN/A
IndustrySemiconductors
Share Statistics
EPS (TTM)22951.54
Shares Outstanding7,304,924,000
10 Day Avg. Volume23,180,426
30 Day Avg. Volume21,241,300
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)13.87
Price to Sales (P/S)17.20
P/FCF Ratio67.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$265.33Price Target Upside66.32% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)26.01
Revenue Forecast (FY)$249.60B
SK Hynix Business Overview & Revenue Model
Company Description
SK hynix is one of the world's largest memory semiconductor companies and engages in the design, manufacture, and sale of advanced memory semiconductors. The company sells a wide variety of DRAM and NAND flash memory products with various configur...
How the Company Makes Money
SK hynix makes money primarily by selling memory semiconductors to electronics OEMs, cloud and data-center operators (via system vendors), and other chip/solution providers. Its core revenue streams are (1) DRAM sales (including commodity DRAM as ...
SK Hynix Earnings Call Summary
Earnings Call Date:Oct 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was strongly positive, supported by record revenue and operating profit, six consecutive quarters of record results, robust AI-driven memory demand, improving HBM4 execution, substantial long-term customer commitments and approximately KRW 100 trillion of planned fiscal 2026 shareholder returns. The main challenges were nonoperating losses, slightly lower NAND bit shipments, expected declines in PC and mobile shipments, near-term supply constraints, market volatility affecting the Solidigm IPO review and customer scrutiny of AI investment pacing. The positive operating and strategic developments significantly outweighed the stated challenges.Positive Updates
Record Quarterly Revenue and Profit
Third-quarter revenue increased 32% quarter-over-quarter and 328% year-over-year to KRW 104.6 trillion, surpassing KRW 100 trillion for the first time and setting a new quarterly record. Operating profit rose 38% quarter-over-quarter and 632% year-over-year to KRW 83.3 trillion, while operating profit margin improved by 3 percentage points quarter-over-quarter to 80%, also setting an all-time quarterly record.
Negative Updates
Solidigm IPO Review Discontinued
Solidigm discontinued its review of potential pre-IPO and IPO options because recent financial market volatility and the correction in semiconductor stocks meant that an IPO would not fully deliver the anticipated benefits at this time.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Revenue and Profit
Third-quarter revenue increased 32% quarter-over-quarter and 328% year-over-year to KRW 104.6 trillion, surpassing KRW 100 trillion for the first time and setting a new quarterly record. Operating profit rose 38% quarter-over-quarter and 632% year-over-year to KRW 83.3 trillion, while operating profit margin improved by 3 percentage points quarter-over-quarter to 80%, also setting an all-time quarterly record.
Read all positive updates
Company Guidance
Management expects global CSP CapEx to grow by more than 60% in 2027, secured power capacity to increase by over 100% year-over-year, and the global AI data center infrastructure market to grow at a high annual growth rate of 40% until 2030; achievable demand growth for 2027 is expected to be at a similar level to this year with growth rates of mid-20% for DRAM and high-teen percent for NAND. Fourth quarter DRAM shipment volume is expected to grow meaningfully by mid-20% sequentially, HBM4 is expected to surpass HBM3E in both the share of total HBM shipment volumes and revenue, 321-layer NAND is planned to exceed 50% of domestic capacity, and fourth quarter NAND bit shipments are expected to increase by mid-single percent sequentially. LTAs with 14 key customers cover more than 50% of total capacity for 2027 and 2028, while DRAM and HBM volumes for the next 3 years through 2029 are effectively sold out; capital expenditures in 2027 are expected to increase significantly compared to 2026. For the 2026 fiscal year, the company plans shareholder return of approximately KRW 100 trillion, including cash dividends of KRW 30 trillion or more and share acquisition/cancellations of KRW 60 trillion or more; the third-quarter dividend is KRW 20,000 per share, totaling KRW 14 trillion, and the company plans to acquire a total of KRW 20 trillion of shares, of which KRW 10 trillion acquired for shareholder return purposes will be canceled in full.SK Hynix Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.00T> | 97.15T | 66.19T | 32.77T | 44.62T | 43.00T |
| Gross Profit | 10.00T> | 58.69T | 31.83T | -533.45B | 15.63T | 18.95T |
| EBITDA | 10.00T> | 65.32T | 37.81T | 3.48T | 18.69T | 24.33T |
| Net Income | 10.00T> | 42.92T | 19.79T | -9.11T | 2.23T | 9.60T |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 96.39T |
| Cash, Cash Equivalents and Short-Term Investments | 87.06T | 35.14T | 14.16T | 8.92T | 6.41T | 8.67T |
| Total Debt | 21.11T | 24.76T | 25.45T | 32.50T | 24.79T | 19.15T |
| Total Liabilities | 86.17T | 55.44T | 45.94T | 46.83T | 40.58T | 34.20T |
| Stockholders Equity | 10.00T> | 10.00T> | 73.90T | 53.50T | 63.27T | 62.16T |
Cash Flow | ||||||
| Free Cash Flow | 91.18T | 24.79T | 13.13T | -4.05T | -4.97T | 6.34T |
| Operating Cash Flow | 10.00T> | 53.37T | 29.80T | 4.28T | 14.78T | 19.80T |
| Investing Cash Flow | -10.00T> | -48.05T | -18.00T | -7.33T | -17.88T | -22.39T |
| Financing Cash Flow | -7.79T | -1.44T | -8.70T | 5.70T | 2.82T | 4.49T |
SK Hynix Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $775.10B | 5.36 | 116.97% | 0.01% | 209.28% | 389.56% | |
82 Outperform | $1.00T | 11.75 | 91.77% | 0.06% | 256.33% | 884.73% | |
75 Outperform | $1.88T | 24.12 | 41.19% | 0.93% | 35.21% | ― | |
67 Neutral | $22.99B | 32.48 | 6.07% | 0.57% | 1.40% | ― | |
66 Neutral | $42.86B | 16.37 | 19.96% | 2.40% | 12.12% | 97.89% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | $347.61B | -27.63 | -11.24% | 2.63% | 12.08% | -17126.43% |
* General Sector Average
SKHY
SK Hynix
149.21
-18.80
-11.19%
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SK Hynix Corporate Events
SK hynix Sets October 28 Conference Call for Q3 2026 Earnings
Oct 14, 2026
SK hynix Inc. has scheduled a conference call to present its third-quarter 2026 earnings results, underscoring the company’s continued emphasis on transparent communication with capital markets. The call, which will include a QA session for ...
SK hynix Clarifies Japan Plant Reports as Expansion Plans Remain Under Review
Sep 18, 2026
On August 21, 2026, the Korea Exchange asked SK hynix to clarify media reports that it was considering building a semiconductor facility in Japan. In a filing dated September 18, 2026, the company said it is reviewing options including additional ...
SK hynix Says No Decision Yet on Potential Sale of Chongqing Packaging Stake
Sep 9, 2026
On August 10, 2026, SK hynix received a disclosure inquiry from the Korea Exchange following media reports that it was pursuing the sale of an ownership stake in its Chongqing, China packaging plant, reportedly valued at around Won 4 trillion. In ...
SK hynix Denies Decision on Reported Won 5 Trillion Pre-IPO Funding for Solidigm
Sep 4, 2026
SK hynix Inc. has responded to market speculation surrounding its U.S. subsidiary Solidigm after a Korea Economic Daily report on August 5, 2026, claimed Solidigm was pursuing a pre-IPO capital raise of about Won 5 trillion. In a clarification fil...
SK hynix Reports Minor Disposal of Treasury Shares to Independent Directors
Aug 21, 2026
SK hynix disclosed that between August 8 and September 7, 2026, it disposed of a small portion of its treasury stock, selling 82 common shares at 1,500,000 won each, for a total of 123 million won, primarily to independent directors via SK Securit...
SK hynix Clarifies Japan Plant Reports After Korea Exchange Inquiry
Aug 21, 2026
SK hynix Inc. disclosed on August 21, 2026, that the Korea Exchange had inquired about media reports suggesting the company may build a semiconductor facility in Japan. In its response, SK hynix stated that while it is reviewing various options to...
SK hynix Announces KRW 40 Trillion Share Buyback for Cancellation
Aug 19, 2026
On August 19, 2026, SK hynix’s board approved an open-market buyback of up to 24,070,000 common shares, with an estimated outlay of about KRW 40 trillion, to be executed between August 20 and November 19, 2026. The move, facilitated by SK Se...
SK hynix Unveils Won 40 Trillion Buyback in Aggressive Shareholder Return Plan
Aug 19, 2026
On August 19, 2026, SK hynix announced an updated shareholder return policy for the 2025–2027 period, stating that it will return more than 50% of cumulative free cash flow to investors. The company said it is pursuing a mix of treasury shar...
SK hynix Board Approves Massive Treasury Share Cancellation Plan
Aug 19, 2026
On August 19, 2026, SK hynix’s board approved the cancellation of treasury shares, targeting approximately 24.07 million common shares out of 730.49 million issued, with an estimated aggregate cancellation value of 40.0 trillion won based on...
SK hynix Semi-Annual Report Highlights Subsidiary Expansion and Strong 2026 Credit Ratings
Aug 18, 2026
SK hynix released its semi-annual business report for the period from January 1 to June 30, 2026, detailing changes in its group structure and credit profile. During the half year, the company expanded its consolidated subsidiary base from 53 to 5...
SK hynix Flags KRW 3.98 Trillion Derivatives Loss With Minimal Equity Impact
Aug 14, 2026
On August 14, 2026, SK hynix reported a derivatives-related loss tied to exchangeable bonds issued on April 11, 2023, totaling approximately KRW 3.98 trillion for the first half of 2026, equal to about 3.3% of its total equity as of December 31, 2...
SK hynix Clarifies Status of Potential Stake Sale in China Packaging Plant After Exchange Inquiry
Aug 10, 2026
On August 10, 2026, SK hynix said it had received a disclosure inquiry from the Korea Exchange following media reports that it was pursuing the sale of an ownership stake in its packaging plant in Chongqing, China, reportedly valued at about 4 tri...
SK hynix Approves Disposal of Treasury Shares for Independent Director Compensation
Aug 7, 2026
On August 7, 2026, SK hynix’s board approved the disposal of 82 common treasury shares to be used as equity compensation for its independent directors, valuing the transaction at an estimated 122.59 million won based on the August 6 closing ...
SK hynix Commits KRW 19.1 Trillion to New M17 Memory Fab in Cheongju
Aug 7, 2026
On August 7, 2026, SK hynix’s board approved a KRW 19.1 trillion investment to build a new semiconductor fabrication plant, M17, in Cheongju, Korea. The project, representing about 15.8% of the company’s total equity as of December 31,...
SK hynix Commits 35.2 Trillion Won to Yongin Y2 Fab Expansion
Aug 7, 2026
SK hynix Inc., a major Korean memory semiconductor producer, manufactures DRAM and NAND flash chips for global technology and data center customers, relying on advanced fabrication plants to sustain scale and competitiveness in a cyclical market. ...
SK hynix Sets Q2 2026 Dividend Record Date and Signals More Shareholder Returns
Aug 7, 2026
On August 7, 2026, SK hynix’s board approved a quarterly cash dividend for the second quarter of 2026, setting August 31, 2026 as the record date, with shareholders on that date eligible for payouts without a closure of the shareholder regis...
SK hynix Clarifies No Decision Yet on Reported ₩5 Trillion Pre-IPO Funding for Solidigm
Aug 6, 2026
On August 5, 2026, the Korea Economic Daily reported that Solidigm, SK hynix’s U.S. subsidiary, was pursuing a pre-IPO capital raise of about ₩5 trillion, prompting clarification from the parent company. In a filing on August 6, 2026, ...
SK hynix Posts Soaring Preliminary Q2 2026 Earnings as Memory Market Rebounds
Jul 29, 2026
SK hynix reported preliminary consolidated results for the second quarter of 2026, covering the period from April 1 to June 30, showing revenue of 79.3 trillion won and operating profit of 60.5 trillion won. These strong figures, released on July ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.