SK Hynix Halts Seven-Session Slide as Washington Export Nod and Falling US Yields Steady the Ship

After a bruising week that wiped double digits off its market value, SK Hynix finally found its footing. The South Korean memory giant closed Friday's session at 1,303,000.00 KRW, a gain of 3.2 percent, snapping a seven-day losing streak that had tested the nerves of even the most committed chip bulls.

The rebound came as US Treasury yields retreated, offering relief across Asia's technology complex. Lower borrowing costs tend to flatter growth-sensitive names, and Seoul's semiconductor heavyweights were quick to capitalize. The broader KOSPI had earlier triggered a temporary trading halt on Thursday, a session in which SK Hynix alone surrendered more than 11 percent.

A Selloff That Analysts Call Overdone

Even with Friday's bounce, the stock sits roughly 57 percent below its 52-week high—a drawdown that has raised questions about whether the recent panic was justified. KB Securities doesn't think so. The brokerage labeled the slump an overreaction, arguing that nothing in the company's underlying operating performance had deteriorated enough to warrant such a rout.

The demand backdrop for AI components remains broadly intact, a point underscored by contract chipmaker TSMC's latest quarterly results. SK Securities struck a similarly constructive tone, projecting further earnings upgrades into next year. The firm points to tightening supply in the memory segment and the potential for additional price hikes on high-bandwidth memory (HBM) chips as key tailwinds. Long-term supply agreements, meanwhile, should shield both margins and future shareholder payouts.

SK Securities reaffirmed its "Buy" rating on Tuesday with a price target of 4 million KRW. For the third quarter of 2026, the brokerage forecasts an operating profit of 79 trillion KRW—roughly 7 percent above the average market consensus.

Dalian Equipment Shipments Await US Clearance

On the regulatory front, SK Hynix is seeking Washington's approval to ship additional US-made chipmaking equipment to its facility in Dalian, China, according to a Reuters report published Wednesday. The request ties into the company's plans for a new fab on American soil.

Management was careful to frame the move as routine. The installation of equipment in Dalian's so-called Module B is proceeding in close coordination with—and subject to approval from—US authorities, the company said, adding that the step does not amount to an expansion of existing production capacity.

China's CXMT Looms Over the Memory Market

Not everything on the horizon is reassuring. Chinese memory maker CXMT is aggressively scaling up standard DRAM output and has plans for new server modules aimed at data centers. Industry watchers note that established players like Samsung and SK Hynix still hold a technological lead of five to seven years in cutting-edge mass production, but chatter about a potential oversupply in conventional memory continues to weigh on sentiment.

There is also the matter of next-generation product timelines. Media reports suggest that certain HBM4 back-end equipment deliveries, originally slated for the second half of 2026, could slip into 2027. SK Hynix declined to comment on those reports, which did not specify the volume of equipment affected.

October 28: The Next Real Test

For investors seeking clarity on near-term profitability, the wait is nearly over. SK Hynix will report third-quarter results on October 28—a print that will serve as the key gauge of whether robust demand for advanced AI memory can continue to outweigh macroeconomic and geopolitical headwinds. Until then, the market's attention will remain fixed on the intersection of interest-rate trends, export regulations, and the company's ability to execute on its technology roadmap.