Mars Finance News: In a report, Lyon said that due to market concerns about the sustainability of AI capital expenditures, a peak-and-decline in memory prices, and the rise of Chinese suppliers, SK hynix’s share price has already fallen 50% from its high. The firm maintains its prior view. Due to the complexity of advanced process nodes, the long ramp-up time for new plants, and ongoing strong demand from data centers, memory supply in 2027 will still remain tight. AI capabilities have become the core competitiveness for ultra-large-scale cloud providers, and as AI models grow increasingly complex, demand for higher-tier memory products should continue to increase. The firm said that its main concerns have already been sufficiently reflected in the share price, maintaining a “high confidence to outperform the market” rating for SK hynix. The report said SK hynix’s second-quarter revenue reached 79.32 trillion won, up 51% quarter-over-quarter. Operating profit was 60.54 trillion won, up 61% quarter-over-quarter, both 6% and 7% below market consensus. The average selling prices for DRAM and NAND rose by 30% and 56%, respectively. Profit coming in below expectations was mainly due to a weaker product mix: including a higher proportion of HBM3E, whose average selling price was flat quarter-over-quarter, and shipments of HBM4 with a higher average selling price to Nvidia that were delayed. Based on ongoing discussions with major customers, Hynix emphasized that AI infrastructure investment will remain strong even after 2027. As AI applications expand into search, program writing, and agentic AI, demand for higher-tier products such as HBM, server DRAM, and high-capacity eSSD is expected to keep growing. HBM4 shipments started in the second quarter, and it expects volumes to accelerate in the second half. (CailianShe)

SK Hynix-9.61%

NVDA0.99%

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Lyon: SK hynix’s share price has already fully priced in multiple concerns; maintain a rating of “high confidence to outperform the market”

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