SK Hynix Adds 7.2% as Morgan Stanley Trims Its Target and Washington Stalls a New York Fab

SK Hynix shares climbed 7.2% today, riding a broad rebound in Asian technology names that followed a strong session on Wall Street. Traders pointed to resilient global demand for AI chips and softer oil prices as the forces lifting South Korean semiconductor stocks, with Samsung Electronics advancing alongside its rival.

The rally had a clear external trigger. The Philadelphia Semiconductor Index surged 6.86% overnight, and optimism resurfaced that spending on artificial intelligence will hold up despite mounting concerns over tighter regulation of AI data centers. Lee Kyung-min of Daishin Securities said permitting delays could push back the timing of individual investments, though the overall volume of spending need not shrink as a result — an observation about the wider industry, not a fresh commitment from SK Hynix itself.

A Lower Target, an Unchanged Rating

The gain lands one day after Morgan Stanley cut its price target on the stock from 2.6 million won to 1.6 million won, while keeping its "Overweight" rating — meaning the broker still expects the shares to outperform. According to media reports, the bank cited worries about memory supply loosening and a slower build-out of data centers after 2028. Today's recovery therefore follows a markedly more cautious valuation from the brokerage.

SK Hynix's own view on supply, laid out at its October 28 earnings presentation, runs in the opposite direction: management expects memory chip shortages to persist through 2030. The company also said at the time that HBM4 was expected to become its leading product in the fourth quarter.

Long-Term Contracts Underpin Output

For the third quarter of 2026, SK Hynix reported revenue of 105 trillion won, an operating profit of 83.3 trillion won and net income of 39.8 trillion won. Long-term customer agreements already cover more than 50% of production capacity for 2027–2028, according to the company, which also expects memory demand to outstrip supply through 2030.

Shareholders are in line for roughly 100 trillion won in returns this year. More than 30 trillion won of that is earmarked for cash dividends, with upwards of 60 trillion won set aside for buybacks and the cancellation of shares.

Licence Logjam in Dalian

International expansion, meanwhile, faces friction. Reuters reported about a week ago, citing people familiar with the matter, that US authorities had not approved requested export licences for equipment at the company's Dalian plant. That has complicated plans by subsidiary Solidigm to invest around $45 billion in two NAND fabrication plants in Marcy, New York.