SK Hynix Sinks With Chip Peers as Broker Trims Target but Keeps Buy Rating
Published on 11/06/2026 at 14:11 | Editorial boerse-global.de
SK Hynix shares came under heavy pressure on Thursday, caught in a sector-wide flight from AI and semiconductor names. The stock was down 7.6% in the session, with Reuters linking the retreat to losses on Wall Street that rippled through Korean chipmakers. Concerns about the returns on hefty AI spending and possible delays in data-center construction added to the gloom, and the weakness in US technology shares sharpened the selling.
The pullback came a day after IBK Investment & Securities cut its price target on the memory maker from 4 million Won to 3.2 million Won on October 29, while sticking with its buy recommendation. IBK attributed the reduction to the gap between the share price and intrinsic value, not to softer conditions in the memory market — a distinction that keeps the call a valuation adjustment rather than a verdict on the industry backdrop.
Solidigm Listing Shelved as Buyback and Payouts Take Shape
Alongside its third-quarter 2026 results, released on October 28, SK Hynix said it had halted its review of an initial public offering for Solidigm. The company reported revenue of 104.6155 trillion Won for the quarter, operating profit of 83.3338 trillion Won and net income of 39.7756 trillion Won.
Should investors sell immediately? Or is it worth buying SK Hynix?
The board also approved an open-market share buyback that same day, covering 14,920,000 common shares for an estimated 20,007,720,000,000 Won. The purchase window runs from October 29 to January 28, 2027, according to the regulatory filing. Roughly 10 trillion Won of the program is earmarked for shareholder returns, with the remainder allocated to employee compensation.
On distributions, SK Hynix declared a quarterly dividend of 20,000 Won per share and a cash dividend of 14 trillion Won for the third quarter. Total shareholder returns for fiscal 2026 are projected at about 100 trillion Won, comprising more than 30 trillion Won in cash dividends and over 60 trillion Won for buybacks and share cancellations. The company also said it intends to pass on gains from its Kioxia stake to investors through a special dividend.
Long-Term Deals Underpin Capacity Through 2028
Management offered a longer-range view of demand on October 28, stating that long-term agreements already cover more than 50% of production capacity for 2027–2028. SK Hynix expects the supply-demand balance for memory chips to stay tight through 2030. For the fourth quarter of 2026, it projected that HBM4 would become its leading product — an outlook published together with the quarterly figures.
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