SK Hynix

Do you still believe in cww's story?

No bottom? SK Hynix in Korean stocks dropped 10%! It dragged down Hong Kong, A-shares, and the US markets 😩

$SK HYNIX INC SPON ADS EACH REP 0.1 SHS WI(SKHYV.US)$SK Hynix(SKHY.US)$Seagate Tech(STX.US)$Sandisk(SNDK.US)$Micron Tech(MU.US)$XL2CSOPHYNIX(07709.HK)$Roundhill Memory ETF(DRAM.US)$Western Digital(WDC.US)

Must buy at least one lot to keep as a base position

$XL2CSOPHYNIX(07709.HK)$SK Hynix - WI(SKHYV.US) The little essay is here -

South Korean local brokerage KIS estimates that SK Hynix's second-quarter operating profit will reach 60.4 trillion won, a 61% increase quarter-on-quarter and a 556% surge year-on-year, but still 8% lower than the market consensus estimate of 65 trillion won. The underperformance is mainly attributed to SK Hynix's higher proportion of HBM revenue compared to its peers, which has led to a lower increase in its average selling price than the market average.

$SK Hynix(SKHY.US)Hahaha, it's dropped so much it's crazy

South Korea's SK Hynix opened really not up but down today..

SK Hynix (Korea) plunged 7.6% to about $134; SK Hynix (US) night session fell 2.07% to $164, looks like I have a chance to get it at $150😂

$SK Hynix(SKHY.US) Why hasn't it switched over?

This is a shocking statistic:

SK Hynix ADR officially listed, ticker $SK Hynix - WI(SKHYV.US), with a valuation gap of up to 15%.

The corresponding market cap of the Korea Composite Stock Price Index (KOSPI) is about $1.03 trillion, while the corresponding market cap of the American Depositary Receipt (ADR) is about $1.19 trillion.

U.S. investors paid a significant premium for this new stock listing on Nasdaq, with the closing price rising 13% to $168.

This state of valuation disconnect is not expected to last long.

SK Group Chairman talks about expanding US investment plan

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"My plan is much larger... far exceeding $35 billion"

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He revealed that the group has committed to invest over $35 billion in U.S. battery and semiconductor projects

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He also said that SK Hynix is exploring a transformation into a "memory service provider"

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In the future, customers may be able to lease memory capacity rather than just buying physical chips

$SK HYNIX INC SPON ADS EACH REP 0.1 SHS WI(SKHYV.US)SK Hynix CEO: Memory Chip Shortage to Persist Until 2030

Recently, Kwak Noh-Jung, CEO of SK Hynix, stated that the current global shortage of memory chips is highly likely to persist beyond 2030.

Hynix will continue to invest in expanding production capacity. For example, the company is building a new chip packaging plant in the United States.

Micron and Samsung Electronics are also rapidly expanding their chip production capacity.

After all, no one wants to lose their profitable market share.$Micron Tech(MU.US)$Direxion Semicon Bull 3X(SOXL.US)$Taiwan Semiconductor(TSM.US)

$SK Hynix(SKHY.US)SK Hynix CEO reiterates unified stance: 2027 could be the year of the most severe shortage in memory chip history$XL2CSOPHYNIX(07709.HK)$Roundhill Memory ETF(DRAM.US)$Micron Tech(MU.US)

The key statement that will determine whether Hynix can break free from cyclical stock valuation

1. On the day of listing, the speech by CEO Kwak Noh-Jung was the focus of the entire event.

He stated bluntly: "The global memory chip industry is heading towards the most severe supply shortage in history, with 2027 expected to be the year of tightest industry supply, and the shortage is projected to persist beyond 2030."

He further revealed that core clients, including NVIDIA, Google, and Microsoft, are signing long-term supply contracts of over five years, "because they believe the shortage will last longer, and locking in price and volume is the optimal strategy." This statement effectively shifted the market's short-term focus from "whether AI investment is slowing down" back to the fundamental narrative of "how severe the capacity bottleneck is."

2. If MaaS is successfully launched, Hynix will transform from a cyclical stock to a growth stock

More strategically significant was the speech by SK Group Chairman Choi Tae-won.

He disclosed two important directions:

First, the possibility of further issuing US shares in the future is not ruled out, with the ADR listing being just the first step in a globalized capital layout;

Second, the company is considering launching a new business model called "Memory as a Service" (MaaS).

Under the MaaS model, clients no longer directly purchase memory chips but instead rent storage resources based on usage. SK Hynix, as the service provider, is responsible for hardware deployment, maintenance, and upgrades.

The core logic of this model lies in alleviating the exponential demand pressure on memory capacity from AI training, while shifting the company's revenue model from one-time chip sales to recurring service fees, thereby smoothing out cyclical fluctuations.

If MaaS is successfully implemented, SK Hynix's valuation framework will shift from a hardware manufacturer to a platform service provider, with valuation multiples expected to improve significantly.

Key Operations for Next Week

On Monday, July 13, SKHYV will switch to the regular trading symbol SKHY, marking the first key milestone. The symbol change signifies that trading access will officially open for more retail brokerages, further enhancing liquidity. On the same day, the 2x leveraged long ETF (SKHU) issued by ProShares and the 2x leveraged product (SKHL) from Direxion will also begin trading.

On Tuesday, July 14, the settlement date for the first batch of SKHYV trades will be completed. The actual positions of some short-term profit-taking trades will be cleared and settled during this period, creating a potential window for the release of short-term selling pressure.

On Wednesday, July 15, the FX settlement for the $26.5 billion fundraising will be completed. This massive amount of US dollars will be converted to Korean won and flow back to South Korea. This capital movement will support the Korean won exchange rate and the KOSPI index, but it also means an increase in US dollar liquidity supply in the Korean market.

In late July, the component adjustment window for the Philadelphia Semiconductor Index (SOX) is about to open. The probability of SK hynix ADR being included in the SOX is extremely high, which will trigger passive allocation by mainstream semiconductor ETFs like SMH and SOXX. UBS estimates that inclusion in the MVIS Semiconductor 25 Index alone will bring about $3.5 billion in passive fund inflows, and cumulative passive funds could reach $15 billion after long-term inclusion in the Nasdaq-100 Index.

On Tuesday, July 29, 17.79 million shares of new Korean stock will officially be listed and become tradable on the Korea Exchange, marking the final key milestone for next week. The new supply will create short-term pressure on the Korean parent stock, and the premium between the ADR and the Korean stock may also narrow as a result.

i think SK is too expensive now, and ADR wont bring SK to another high.$SK Hynix(SKHY.US)

Is leveraging up this exciting? 🤪 Koreans are awesome 🐂🍺

$SK Hynix(SKHY.US)$XL2CSOPHYNIX(07709.HK)$XL2CSOPSMSN(07747.HK)$Micron Tech(MU.US)$Sandisk(SNDK.US)$Direxion Semicon Bull 3X(SOXL.US)$iShares Semiconductor ETF(SOXX.US)

SK Hynix's US listing, in my opinion, is most significant not for "fundraising" but for "pricing power." In the AI era, HBM has become one of the most scarce links in the computing power industry chain, and SK Hynix is a core supplier. The US stock market can provide global capital, higher liquidity, and a more international valuation system. The sharp rise on the first day of trading primarily reflects the market's enthusiasm for the AI industry chain and does not mean it will only go up in the future. After all, semiconductors are a highly cyclical industry. If HBM demand continues and AI capital expenditures from companies like NVIDIA remain high, SK Hynix still has a long-term logic. However, if AI investment cools down, the high valuation will also face pressure to retreat. For investors, rather than just focusing on the first day of listing, it's more worthwhile to pay attention to order books, gross margins, and changes in HBM market share in the coming quarters. $SK Hynix - WI(SKHYV.US)$SK Hynix(SKHY.US)

$SK Hynix - WI(SKHYV.US)$SK Hynix(SKHY.US) Let's review the first day of SK Hynix ADR's listing. The listing of the 'Herculean' stock on the US market seemed calm on the surface, but these points reveal major opportunities for the future storage industry, and even the semiconductor industry.

First, look at the trading data: The issue price for SKHYV was set at $149 per share, which is at the lower-middle end of the pricing range of $147 to $155. The issuer clearly left room for an opening day rise.

It opened at $170, a 14.1% premium to the issue price, directly jumping over the upper limit of the indicative price range.

After opening, buy orders continued to pour in. The intraday high reached $177, representing a gain of up to 18.8% over the issue price. However, the high point could not be sustained, and the price gradually retreated, hitting a low of $166.19, with an intraday volatility of 6.5%. It finally closed at $168.01, a first-day gain of 12.8%, down about 1.2 percentage points from the opening.

The trading volume reached 106 million shares. Based on the total of 177.9 million ADS, the first-day turnover rate was as high as 59.5%.

This number indicates a relatively active level for a new stock's first day of trading, suggesting that a large number of institutions that won allotments chose to cash in profits on the first day. The after-hours trading price rebounded to $172.14, up 2.5% from the close, showing incremental buying interest at the tail end of the session.

Next article will discuss key operations for next week: