$SK hynix(SKHY)$ Looking at the valuation discount on Korean memory stocks, it's pretty striking. Hanwha Investment & Securities ran the numbers using Bloomberg forecast data, and the forward P/E comparisons really stand out. Kioxia sits at 106.6x, TSMC at 24.4x, and Micron Technology at 18.3x. Meanwhile, Samsung Electronics and SK Hynix are trading at just 6.3x and 8.6x respectively. Against the average P/E of 49.65x for those three peers, that puts Samsung and SK Hynix at a discount of roughly 82% to 87%.
$SK hynix(SKHY)$ SK is up 5.4% now. It's technically broken out of its trading corridor. That should hopefully attract more buying later on. Buy-side circuit breakers and sidecars are getting tripped in Korea. It's a beautiful thing.
$SK hynix(SKHY)$ $SanDisk Corp.(SNDK)$ SanDisk looks like it's trying to break out of its downtrend. It has cleared the upper wall of its trading corridor, but it still needs to hold that level for confirmation.
$Micron Technology(MU)$ $SK hynix(SKHY)$ If the market doesn't bring the valuation, buybacks will still get it there anyway. I was already bullish on memory based on the HBM and strengthening consumer thesis I've been talking about. After the conference, I'm leaning toward the view that this works fine as a long-term hold even beyond that.
$SK hynix(SKHY)$ How does SKHY navigate the cresting of margin increases? Short term, I think we see some volatility that works against the stock, but after that, the data center buildout over the next 3-5 years should bring a period of decent profits and give SKHY a boost. Will there be a memory glut? That depends on how corporate AI adoption plays out. I expect a large wave of adoption early on, then a slower stretch as companies wait for better products. The computer age was a massive boom from 1985-1991, then slowed down. The internet boom ran from 1995-2000, then crashed hard. The smartphone boom lasted from 2006-2026 — just look at AAPL's stock price over those years. The AI boom started in 2022 and we still have no clear sight of how b
$SK hynix(SKHY)$ Samsung Electronics and SK hynix are projected to hold a combined $263.4 billion in net cash by the end of this year, according to Reuters. The figure is estimated to be more than twice Nvidia's net cash of about 145 trillion won and even higher than the combined net cash holdings of all the "Magnificent Seven" companies, such as Apple, Google and Microsoft. That's a pretty wild stat.