SK Hynix Gains 7.2% as Brokerage Cuts Target and Honam Site Call Nears

SK Hynix shares advanced 7.2% as a broad rally in Asian technology names lifted Korean chipmakers, with falling crude prices and a rebound in US AI semiconductor stocks reviving appetite for risk. The move was part of a wider recovery across tech and chip equities rather than a response to any fresh company announcement.

Traders returned to Korean chip stocks after recent losses, according to media reports, which pointed to renewed confidence that overall spending on artificial intelligence will be sustained. Investors were also reassessing worries that the outcome of the US midterm elections could slow AI investment. The drop in oil prices had followed remarks by US President Donald Trump on Iran.

Morgan Stanley Trims Its Target

Morgan Stanley analyst Shawn Kim cut his price target on SK Hynix yesterday to 1.6 million won from 2.6 million won, even as he raised his forecast for operating profit in 2027. The report flagged possible growth in memory supply from late 2027 and pressure on margins — meaning the note carries reservations about how the supply picture develops despite the brighter earnings estimate.

Honam Location Due in November

Separately, South Korea's industry minister Kim Jung-kwan said a decision on where to place factories in the Honam semiconductor cluster is expected to be finalised within November. SK Hynix and Samsung Electronics are both involved in the project, and the minister said neither company is withdrawing.

Dalian Licence Still Pending

On investment plans for its Chinese plant, Reuters reported roughly a week ago that US authorities had not yet approved export licences for equipment needed to expand production at the Dalian facility, citing unnamed sources. The hold-up on US-made machinery has complicated investment planning. Reuters said talks were continuing, and that the report concerned approval of equipment for the Chinese site and its connection to reported American factory plans.

Third-Quarter Figures

For the third quarter of 2026, SK Hynix reported revenue of 105 trillion won and operating profit of 83.3 trillion won, alongside a net profit of 39.8 trillion won. The company said larger-scale HBM4 shipments had begun and expected HBM4 to become its main product from the fourth quarter of 2026 — an expectation that accompanied the quarterly release rather than a new corporate statement tied to yesterday's share move.