--- title: "CLSA Says Multiple Concerns Already Priced In for SK Hynix (000660.KS); Maintains 'High Conviction Outperform'" type: "News" locale: "en" url: "https://longbridge.com/en/news/294164635.md" description: "CLSA maintains a 'High Conviction Outperform' rating for SK Hynix, asserting that market concerns regarding AI capex and memory prices are already priced in. Despite Q2 earnings slightly missing consensus due to product mix and shipment delays, strong demand for advanced memory persists. CLSA forecasts continued tight supply through 2027 and projects Q3 operating profit growth of 32% driven by rising average selling prices." datetime: "2026-07-29T06:57:01.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294164635.md) - [en](https://longbridge.com/en/news/294164635.md) - [zh-HK](https://longbridge.com/zh-HK/news/294164635.md) generator: "portal-rs" --- # CLSA Says Multiple Concerns Already Priced In for SK Hynix (000660.KS); Maintains 'High Conviction Outperform' CLSA published a report stating that amid market concerns over the sustainability of AI capital expenditure, peaking and declining memory prices, and the rise of Chinese suppliers, SK Hynix (000660.KS) shares have retreated 50% from their peak. The broker maintained its previous view that memory supply will remain tight in 2027 due to the complexity of advanced process nodes, the lengthy ramp-up period for new fabs, and continued strong data center demand. AI capability has become central to the competitiveness of hyperscale cloud operators, and demand for high-end memory products is expected to continue rising as AI models become increasingly sophisticated. Based on a 4x price-to-book ratio, the key concerns have already been fully reflected in the share price, and the broker maintained its "High Conviction Outperform" rating. The report stated that SK Hynix's 2Q revenue reached KRW79.32 trillion, up 51% QoQ, while operating profit was KRW60.54 trillion, up 61% QoQ, both 6% and 7% below market consensus respectively. Average selling prices for DRAM and NAND increased 30% and 56% respectively. Earnings missed expectations mainly due to a weaker product mix, including flat QoQ average selling prices for a higher proportion of HBM3E products, as well as delayed shipments of higher-priced HBM4 products to NVIDIA Corporation (NVDA.US) . Net profit reached KRW93.8 trillion, up 133%, mainly due to a one-off investment disposal gain of KRW63.3 trillion, partly from the sale of its stake in KIOXIA (285A.JP). Net cash rose sharply to KRW69.4 trillion from KRW35 trillion in 1Q. Based on ongoing discussions with major customers, Hynix emphasized that AI infrastructure investment will remain strong even beyond 2027. As AI applications expand into search, coding and agentic AI, demand for premium products such as HBM, server DRAM and high-capacity eSSD is expected to continue growing. Third-quarter guidance projects DRAM shipment growth of 10% and NAND growth of 2-3%. HBM4 shipments commenced in 2Q and are expected to accelerate in 2H. CLSA forecast third-quarter operating profit to rise 32% to KRW80.1 trillion, driven mainly by a 15% increase in average selling prices for DRAM and NAND. In addition, the company is evaluating various additional shareholder return plans. (ha/u)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.) ### Related Stocks - [SKHY.US](https://longbridge.com/en/quote/SKHY.US.md) - [07709.HK](https://longbridge.com/en/quote/07709.HK.md) - [03121.HK](https://longbridge.com/en/quote/03121.HK.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Samsung unveils plan to return up to US$79 billion to shareholders](https://longbridge.com/en/news/296615008.md) - [Samsung Elec to convene board meeting Friday to discuss shareholder return plan, says source](https://longbridge.com/en/news/296559540.md) - [South Korea's SK Hynix weighs Japan chip plant, multi-trillion won investment: report](https://longbridge.com/en/news/296553474.md) - [Memory Giants Including Micron, SK Hynix, and SanDisk Rally: Is It Worth Buying DRAM ETFs Now?](https://longbridge.com/en/news/296065323.md) - [SK Hynix union finalising preliminary wage deal, source says](https://longbridge.com/en/news/296284094.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**