SK Hynix Climbs 7.2% as Long-Term Deals Lock Up Half of 2027–28 Output

SK Hynix shares advanced 7.2% on Wednesday, riding a rebound in Asian technology stocks that followed a strong overnight session on Wall Street. The gain came alongside strength in Samsung Electronics and formed part of a wider recovery across South Korean semiconductor names, with media reports pointing to resilient global demand for AI chips and lower oil prices as supports for sentiment.

The rally had a clear external trigger. The Philadelphia Semiconductor Index had risen 6.85% the previous day, and gains in AMD, Broadcom and Micron reinforced the view that spending on AI infrastructure will hold up despite regulatory concerns. Reports also cited buying after earlier losses as a factor behind the bounce.

Morgan Stanley Cuts Its Target but Keeps Overweight Rating

The upbeat session followed a notably more cautious assessment from Morgan Stanley, which on Tuesday lowered its price target for SK Hynix to 1.6 million Won from 2.6 million Won. The brokerage kept its "Overweight" rating, meaning it still sees the stock outperforming. According to media reports, the cut reflected worries about memory supply easing and a slower build-out of data centers after 2028.

That view sits in contrast with the company's own reading of the market. At its earnings presentation on October 28, SK Hynix said it expects memory chip shortages to persist through 2030 — a forecast that extends well beyond the window already covered by binding contracts.

More Than Half of 2027–28 Capacity Already Committed

Long-term agreements now cover more than 50% of production capacity for 2027–2028, according to the company. SK Hynix also expects memory demand to outstrip supply through 2030, meaning the scarcity it anticipates runs past the period already tied up in contracts. Management added at the same presentation that HBM4 was expected to become its leading product in the fourth quarter.

The October 28 report showed third-quarter 2026 revenue of 105 trillion Won and operating profit of 83.3 trillion Won. Net income came in at 39.8 trillion Won.

Shareholder Returns Set at Roughly 100 Trillion Won

Alongside the quarterly figures, SK Hynix unveiled plans to return about 100 trillion Won to shareholders this year. Cash dividends of more than 30 trillion Won are set to make up part of that total, while more than 60 trillion Won has been earmarked for share buybacks and the cancellation of shares. The company had already announced a third-quarter dividend of 14 trillion Won and a 20 trillion Won buyback program.

On the equipment side, KCTech disclosed a supply contract with SK Hynix awarded on Tuesday. The order is worth around 21.1 billion KRW, with delivery scheduled to run until April 1, 2027. The deal covers equipment for semiconductor manufacturing, with KCTech as contractor and SK Hynix named as the customer.