SK hynix (KOSE:A000660) Eyes New Shares And ADRs, Is It Still Undervalued? - simplywall.st

SK Hynix is drawing attention following its board's recent decision to consider issuing new shares for listing in South Korea and American Depositary Receipts (ADRs) on Nasdaq. Despite strong recent m... Read original →

SK hynix’s move to issue new shares and ADRs is a strategic capital reload amid the AI memory boom. Technically, mass production of HBM3E and 3nm EUV-based DRAM will force tighter co-optimization with TSMC’s CoWoS packaging, raising barriers for Micron and Samsung. Geopolitically, any U.S. extension of export controls to HBM could slash utilization at its Wuxi fab, inflating operating costs by over 15%. Samsung is already countering with aggressive pricing, while Micron leverages CHIPS Act subsidies to lock in North American clients. If SK hynix fails to convert its current 53% valuation gap into tangible market share—especially by missing the HBM4 standard-setting window—its stock could correct 20–30% within 18 months despite strong near-term momentum.