Marcos Milla
Former Analyst at the Federal Reserve, ETF/Stock Newsletter Author
SK hynix is easily a buy now, as high-bandwidth memory remains one of the scarcest inputs in the AI buildout. Per xETFs, AI models stall when memory cannot keep up with processors, and SK hynix CEO Kwak Noh-Jung said in July 2026 that the company still forecasts customer demand to exceed its supply capacity even beyond 2030. x.comÂ
SK hynix's 'insane' earnings set up a sharp move higher in the shares. x.comÂ
SK hynix's dividend delivers far less value to holders of its premium-priced US ADRs than buybacks would. The ADR premium destroys a third of the yield, and income taxes push the total value lost versus buybacks above 50%; the dividend decision is atrocious for US holders. x.com x.comÂ
SK hynix was priced to perfection, and its relisting into QQQ was meant to drive it higher, but it missed its first quarter after going public, which a newly listed company can't afford to do. x.com x.comÂ
SK hynix's Korean shares look set to rally because its ADR trades at a 35% premium to the Korean listing. Short sellers trying to arbitrage that gap in the $30 billion ADR are getting crushed, a detail missing from coverage of the stock's 27% one-day jump noted by @TheStalwart. x.com x.comÂ
SK hynix's expected widening supply-demand gap makes the 2028 downcycle implied by its valuation seem impossible. SK hynix management says its shares are undervalued relative to earnings and cash flow, and that assessment rings true. x.com x.comÂ
The DRAM ETF looks better than SK hynix's ADR, which trades at a 23% premium to its Korean-listed shares. That premium should shrink further after July 29, when Korea enables two-way exchange between common shares and ADRs and lists the ADRs locally, making the Korea ETF or DRAM the smarter buy. x.comÂ
SK hynix's reported growth and shareholder returns make its low earnings multiple stand out. Revenue rose 328% year over year and operating profit 632%, with shareholder returns worth about 9.5% of market cap, yet the stock trades at roughly 3.0 times estimated 2027 earnings. x.comÂ
SK hynix should reprice strongly because its blowout earnings make the case that memory is structurally different now. At the current earnings pace, it would earn back its entire market cap in two years; buybacks and dividends also return cash to shareholders and add to value. x.comÂ
SK hynix looks like the weakest storage short because it has fallen behind. More negative news may follow beyond HBM4; its LPDDR6 is reportedly well behind Samsung's. x.com x.comÂ
Micron is the better memory buy here because Korean stocks have traded poorly and SK hynix's US ADR carries a massive premium over its Korean listing. SK hynix remains the preferred company; HBM is favored over NAND, making Micron and SK hynix preferable to SanDisk. Memory stocks look cheap, with very attractive risk/reward at these levels, and are unlikely to stay cheap for long. x.comÂ