SK hynix (KOSE:A000660): Revisiting Valuation After a 220% Surge in the Memory and AI Upcycle

SK hynix (KOSE:A000660) has quietly become one of the strongest performers in global semiconductors, with the stock up more than 220% over the past year as investors lean into the memory upcycle.

See our latest analysis for SK hynix.

That surge has come as the market has re-rated anything tied to high bandwidth memory and AI infrastructure, with SK hynix enjoying a 57.79% 3 month share price return and a 221.62% 1 year total shareholder return, signalling strong momentum rather than a one off spike.

If SK hynix has you rethinking what is possible in semiconductors, now is a time to explore other high growth tech and AI names using high growth tech and AI stocks.

With SK hynix trading at a steep gain yet still sitting roughly 27 percent below consensus targets and at a reported intrinsic discount, is this a rare mispricing to buy into, or is the market already banking on years of growth?

Most Popular Narrative Narrative: 18.4% Undervalued

With SK hynix last closing at ₩557,000 and the most followed narrative pointing to a fair value near ₩682,451, the implied upside is striking and rooted in aggressive AI memory assumptions.

Accelerating demand for high-performance memory solutions, particularly HBM and next-gen DRAM, as AI workloads and advanced reasoning models proliferate, this is expected to sustain double-digit revenue growth and expand margin through premium pricing on leading products.

Read the complete narrative.

Curious how long double digit growth can last and what profit profile it demands? The narrative leans on bold earnings power and a future multiple that assumes SK hynix keeps its AI memory edge. Want to see the exact growth and margin path behind that conviction?

Result: Fair Value of ₩682,451 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, elevated capex demands and intensifying HBM competition could compress margins and derail the earnings trajectory that is embedded in today’s optimistic AI memory narrative.

Find out about the key risks to this SK hynix narrative.

Build Your Own SK hynix Narrative

If the current storyline does not quite match your view, dive into the numbers yourself and build a personalised thesis in minutes, Do it your way.

A great starting point for your SK hynix research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Ready for more high conviction ideas?

Before you move on, lock in your next opportunities by running focused screens on powerful themes that could reshape your portfolio faster than the headlines change.

• Target reliable income streams by scanning these 13 dividend stocks with yields > 3% that can strengthen your returns when markets turn choppy.
• Ride the structural shift toward intelligent automation with these 26 AI penny stocks positioned to benefit from rapid advances in machine learning and data infrastructure.
• Position yourself ahead of the next major computing leap by reviewing these 28 quantum computing stocks aiming to commercialise breakthroughs before they become mainstream.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com