Leading brokerage Wedbush expects memory's memorable run to continue following the rise in revenue guidance from extreme ultraviolet (EUV) machine maker ASML (ASML). The development is expected to be beneficial for DRAM-focused memory chipmakers like the newly listed SK Hynix (SKHY).
“We view the increased 2027 outlook (and potential increase in 2028 EUV builds) as consistent with the strong demand we are seeing for both leading-edge logic and DRAM to support AI builds,” analyst Matt Bryson opined in a note to clients. “The timing of increased shipments fits our view that higher spend in 2027 will ultimately lead to increased output in late 2027/early 2028 (for memory in particular).”
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"We are less certain when supply will ultimately match demand given continued growth in spend," the analyst added.
The excitement around memory names has seen no signs of waning. The U.S. listing of SK Hynix added to the excitement even further earlier this month.
With SK Hynix's debut now out of the way, how should investors view SKHY stock after it has cooled down a bit and while wider optimism around memory stocks remains red hot? Let's take a closer look.
www.barchart.com Super Hynix
Earlier this month, in a piece about SK Hynix just before its U.S. listing, I tried to make sense of the aura around the company and its status in the memory world. Since then, the only thing that has changed is the share price. You can now own shares (or ADRs) of SK Hynix at a 13% discount from the 52-week high, making the investment case compelling.
However, there is more to SK Hynix than just DRAM and NAND.
First, there is Processing-in-Memory (PIM), which SK Hynix has been developing longer than any rival and has actually deployed in real-world applications. The company's AiMX solution — an accelerator card built around a GDDR6-AiM chip specialized for large language model (LLM) inference — embeds computing units directly inside the memory chip itself rather than shuttling data back and forth to a separate processor. Industry experts estimate that more than 80% of the time and power consumed during AI workflows can be wasted on data transfer alone, which is the precise bottleneck PIM is designed to eliminate.
SK Hynix has also demonstrated Compute-using-DRAM (CuD), a next-generation product that performs simple computations within the memory cell itself, taking the PIM concept one step further down the architecture stack. Neither Samsung or Micron (MU) have a commercially deployed PIM product with the same level of real-world customer validation that SK Hynix has built through the AiMX platform.
The second pillar here is CXL, or Compute Express Link, where SK Hynix is running ahead of schedule. The company showcased its second-generation CMM-DDR5 — applying CXL 3.2, the latest version of the standard — at HPED 2026 last month, while Samsung has not yet disclosed a specific mass production schedule for an equivalent CXL 3.2 product.
CXL is structurally important because it allows memory to be shared across multiple GPUs in an AI server rather than being locked to a single processor, effectively expanding the total addressable memory pool without adding more high-bandwidth memory (HBM) stacks.
Finally, SK Hynix has also introduced the Heterogeneous Memory Software Development Kit (HMSDK), a proprietary software suite for CXL operations that gives customers a managed stack rather than leaving them to build their own software layer. This deepens platform lock-in in a way pure hardware specifications cannot.
Roaring Numbers for Q1
SK Hynix delivered an outstanding financial performance in the first quarter of 2026, highlighted by record-high revenue figures.
Revenue for the period reached 52.58 trillion Korean won, marking a 198% year-over-year (YOY) increase. Gross margins expanded significantly to 79% from 57% in the prior-year period. Both DRAM and NAND average selling prices posted notable sequential gains, advancing in the mid 60% range for DRAM and mid 70% for NAND. Net profit margins strengthened to 77%.
The company maintained a strong liquidity position, closing the quarter with cash holdings of KRW 54.3 trillion. This balance substantially exceeded short-term debt of KRW 5.89 trillion. The debt-to-equity ratio improved markedly to 12% from 29% in Q1 2025, demonstrating prudent balance sheet management.
Valued at a market capitalization of about $1.07 trillion already, SKHY stock is down 13% for the past five days.
What Do Analysts Think of SK Hynix Stock?
Amid limited coverage on its U.S. ADRs, SKHY stock has been unanimously assigned a consensus “Strong Buy” rating by two analysts. The mean target price of $277.50 suggests potential upside of about 63% from current levels.
www.barchart.com On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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