SK Hynix Investment Analysis.
My portfolio has ~25% of SK Hynix and continue to remain very bullish for the memory giant. For reference, micron's earnings report provided confidence to the market given that:
(from 2026 FQ2 to 2026 FQ3)
Revenue went up ~74, Gross Profit went up ~97%, Net income went up ~105%
For YoY quarterly performance, net income beats analyst estimates by almost 400%. Bear in mind that these are the same analysts that projects significantly low PEG ratios (~0.1) and forward PE so they are bald estimators to begin with. Not the best valuation approach but it's good to know that share price surged ~750% in the past year but net income exploded to about 1400%, effectively double the price. Part of the reason is that Micron's Gross Margin surged to ~86.56%, up from ~74.41% last quarter.
Micron is not comparable to SK Hynix in the HBM market (~20% vs 60% market share). Bear in mind that this is the same trend that allows the memory sector, in their first year, to break through their memory cycle for NAND, DRAM and SSD products. Micron expect high-volume shipments of HBM4 for lead customer platforms in 2026, which SK Hynix had mass produced in 2025 September, now together with Samsung already delivering HBM4E samples to customers, which again Micron lags behind.
With the absolute shortage in HBM and SK Hynix's clear lead in HBM, I think some analyst estimate of SK Hynix share price reaching 4m krw at end of the year is reasonable. Price now drops ~20% from it's record high as this comment is posted, buying some dips in the meantime.
Numbers are sourced from CapIq. Feel free to argue back but please pair up with fair analysis.