SK Hynix Stock Still Favored by Institutions After Volatility: HBM4 and Long-Term Supply Agreements Support AI-Era Growth

TechFlow news, August 08, according to Korean media NATE, driven by the AI investment boom, SK Hynix's stock price has recently experienced sharp fluctuations. Against the backdrop of intensified market volatility, SK Group released an advertisement quoting founder Choi Jong-geon (최종건)'s famous words: "Despair and hope are two sides of the same coin, despair can be turned into hope just like flipping a hand," and rewrote it as "Anxiety and expectations in the AI era are also two sides of the same coin, anxiety can be turned into expectations," thereby conveying confidence in the long-term development of the AI industry.

Securities firms believe that short-term stock price fluctuations have not changed SK Hynix's fundamentals, and the market should focus on its HBM4 technological leadership and the performance stability brought by Long-Term Agreements (LTA). Hyundai Motor Securities analyst Noh Geun-chang (노근창) stated that SK Hynix's third-quarter DRAM and NAND bit growth rates are expected to reach 9.7% and 1.5% respectively. With the expansion of HBM4 sales contribution, even if the proportion of Long-Term Agreements increases, DRAM Average Selling Price (ASP) is still expected to rise 19.9% quarter-on-quarter. Regarding competition concerns brought by China's CXMT (ChangXin Memory Technologies), Noh Geun-chang believes that considering the continued strengthening of U.S. semiconductor equipment export restrictions, and Micron expanding domestic investment in the U.S., the possibility of major enterprises such as Apple adopting Chinese memory chips is relatively low.