TLDR
- SK Hynix fell 3% to 1,231,000 won in early Seoul trading Monday, while U.S.-listed SKHY was down about 7%.
- Last week was the stockās worst since 2008, with reports citing a drop of 15% to 24%.
- Foreign investors sold a net 5.36 trillion won of the stock, and foreign ownership fell to 48.85%.
- Goldman Sachs raised its 12-month target to 3.5 million won, citing tight supply through 2028.
- Third quarter earnings are due October 28.
SK Hynix (SKHY) stock fell again on Monday, dropping 3% to 1,231,000 won in early Seoul trading. The U.S.-listed SKHY line was down about 7% in the latest quote.
It has been a rough stretch for holders. Reports differ on the size of last weekās drop, with one citing 15% and another 24%.
The 24% figure comes from a slide between 1.681 million won and 1.272 million won from October 12 to 16. Either way, it was the stockās worst week since 2008.
Even so, the stock is still up more than 80% this year. TipRanks rates SKHY a Strong Buy, with an average target of $254.70 that implies about 77% upside.
Foreign Investors Head for the Exits
Overseas investors did most of the selling. They sold a net 5.36 trillion won of SK Hynix last week, according to Korea Exchange data.
Foreign ownership dropped to 48.85%, the lowest since December 2021. Across the Kospi, overseas funds pulled out 11.21 trillion won.
SK Hynix and Samsung Electronics made up nearly 79% of that total. Samsung lost between 9% and 18% last week, depending on the report.
The main worry is whether AI firms can pay for their data center plans. SK Hynix sells high-bandwidth memory for AI chips, so slower spending could hit orders.
CoreWeave is the example in focus. Its stock fell almost 12% on Friday, and its credit default swap premium climbed above 1,200 basis points.
Vey-Sern Ling of Union Bancaire PrivĆ©e said that if hyperscalers and neoclouds cannot fund their projects, āthat would translate into lower orders.ā My Bui of AMP pointed to rising bond yields and wider credit spreads.
Chinaās CXMT also drew attention after reporting progress on denser DRAM chips. Its ability to make them at scale is unproven.
Goldman Sees Tight Supply Into 2028
Goldman Sachs raised its 12-month price target to 3.5 million won. It expects supply of standard DRAM, NAND flash and HBM to be tighter in 2027 than in 2026.
The bank thinks the shortage could last through 2028. It sees little near-term threat from new rivals, since meeting major customersā quality standards takes years.
The Korea Times said the selloff looked overdone because too few buyers stepped in. Cho Sang-hyun of Hyundai Asset Management called it a temporary overreaction to AI bubble fears.
Evidence of weaker chip orders is limited so far. The stock is being priced for a possible slowdown, not one that has shown up yet.
Kiwoom Securities analyst Han Ji-young said to watch CoreWeave stock, corporate bond yields and default insurance premiums. Steady foreign buying would be another sign of returning confidence.
SK Hynix reports third quarter earnings on October 28, with a call at 9 AM Seoul time. TrendForce expects conventional DRAM contract prices to rise 10% to 15% this quarter.
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