SK hynix (KOSE:A000660) Stock After Huge AI-Driven Rally Is There Still Value? - simplywall.st

SK Hynix, a leading global memory chip manufacturer, has experienced a significant stock price surge driven by the AI boom. This article analyzes SK Hynix's recent performance, with a year-over-year r... Read original →

SK hynix’s rally reflects a structural shift in AI-driven memory demand, not speculative froth. Its HBM3E and 1β DRAM are now integral to NVIDIA and AMD AI accelerators, spurring upstream orders for EUV tools and advanced packaging—and forcing TSMC to prioritize CoWoS capacity. Geopolitically, while U.S. export compliance raises costs, its Xi’an fab in mainland China faces fewer disruptions than peers in Taiwan, China, enhancing supply chain resilience. As Micron races toward HBM4 and Samsung ramps 3D NAND capex, SK hynix’s sharp focus on high-bandwidth memory creates a defensible niche. Over the next 18 months, with AI server DRAM bit demand surging over 50% annually and 3D stacking yields improving, the company is poised to reprice from cyclical commodity to AI infrastructure enabler—making its current DCF undervaluation a lag in market recognition of its strategic indispensability.