SK hynix Inc. is expected to report its highest-ever operating profits for Q3 2026, with forecasts between ₩80–82 trillion surpassing Bloomberg's consensus of ₩77.5 trillion. The company benefits from strong DRAM prices and increasing demand for AI storage, maintaining its position as a leading HBM supplier despite a 57% drop from June highs. However, SK hynix's U.S.-listed ADRs trade at a 42.1% premium to its Korean shares, presenting valuation risks for American investors. While a ₩40 trillion share buyback and the cancellation of Solidigm's IPO support shareholder value, concerns remain over rising capital expenditures and potential memory oversupply. The analyst maintains a Hold rating with a $165 price target, preferring to wait for clearer 2027 earnings and a narrower ADR premium before buying.
As of Oct 26, 2026 19:31 WIB, SK hynix's U.S.-listed ADR trades at USD 141.39 on Pluang, up 3.16% in one day but still 28.8% below its 52-week high of USD 198.63. This contrasts with the 42.1% premium of the ADR over its Korean shares noted in the article, highlighting valuation differences across markets. The stock's 52-week low is USD 126.79, showing the current price is closer to the low end of its annual range despite recent gains.
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