SK hynix (NASDAQ:SKHY) Shares Down 1.6% After Earnings Miss

Key Points

• Shares fell 1.6% after SK hynix reported quarterly EPS of $3.84, missing the $5.96 consensus estimate, despite revenue of $73.86 billion exceeding analysts’ $66.41 billion forecast.
• AI-driven HBM demand remains a major growth driver: Record results, capacity reportedly sold out through 2029, and customer agreements covering more than half of 2027–2028 capacity support the company’s outlook.
• Analysts remain broadly positive, with the stock carrying an average “Buy” rating and a $258.22 price target; however, sector-wide weakness and concerns that elevated memory margins may eventually normalize continue to weigh on shares.

SK hynix Inc. (NASDAQ:SKHY - Get Free Report)'s share price dropped 1.6% during trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $159.04 and last traded at $162.09. 21,234,495 shares changed hands during trading, a decline of 20% from the average session volume of 26,595,791 shares. The stock had previously closed at $164.70.

The memory chip maker reported $3.84 EPS for the quarter, missing the consensus estimate of $5.96 by ($2.12). The firm had revenue of $73.86 billion during the quarter, compared to analyst estimates of $66.41 billion.

SK hynix News Roundup

Here are the key news stories impacting SK hynix this week:

• Positive Sentiment: Record results and strong AI demand: Third-quarter revenue reportedly reached a record 104.6 trillion won, while operating profit surged 632% year over year. Demand for high-bandwidth memory (HBM), particularly HBM4, is driving pricing, margins and growth. SK Hynix third-quarter profit sharply beats estimates on AI memory boost
• Positive Sentiment: Visibility into future sales: Long-term customer agreements reportedly cover more than 50% of capacity for 2027 and 2028, while management expects memory demand to exceed supply through 2030. Output of DRAM and HBM is described as effectively sold out through 2029, supporting sustained pricing power. SK Hynix Says Memory Is Sold Out Through 2029
• Positive Sentiment: Large shareholder returns: SK hynix announced an approximately 100 trillion won 2026 return plan, including dividends, buybacks and share cancellations. The program signals management’s confidence in cash generation and could support valuation. SK Hynix Plans $75 Billion in Shareholder Returns After Blockbuster Earnings
• Neutral Sentiment: Solidigm uncertainty reduced: The company discontinued its review of a potential Solidigm IPO and denied reports of a confirmed large U.S. NAND plant, removing some near-term corporate-structure uncertainty but providing limited immediate earnings impact.
• Negative Sentiment: Sector-wide risk-off trading: Weaker-than-expected Alphabet results and a sharp decline in Samsung Electronics shares pressured technology and memory stocks, offsetting optimism from SK hynix’s earnings and outlook. Why are Micron, SK Hynix and SanDisk stocks falling on Thursday?
• Negative Sentiment: Valuation-cycle concerns remain: Some analysts warn that exceptionally high memory margins may eventually normalize as competitors expand capacity, making the stock vulnerable despite record earnings. Reported quarterly EPS also came in below the cited consensus estimate, adding a valuation-related overhang.

Analyst Ratings Changes

A number of brokerages recently weighed in on SKHY. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $200.00 price objective on shares of SK hynix in a report on Wednesday. Zacks Research raised shares of SK hynix to a "hold" rating in a research report on Friday, July 24th. UBS Group initiated coverage on SK hynix in a research note on Wednesday, July 29th. They issued a "buy" rating and a $204.00 target price on the stock. Weiss Ratings began coverage on shares of SK hynix in a report on Friday, October 2nd. They issued a "hold (c)" rating for the company. Finally, Citigroup raised SK hynix to a "strong-buy" rating in a research report on Wednesday, September 2nd. Four analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Buy" and an average price target of $258.22.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in SKHY. Ramsey Quantitative Systems bought a new stake in shares of SK hynix in the third quarter valued at about $30,000. Financial Management Professionals Inc. acquired a new position in shares of SK hynix during the 3rd quarter worth approximately $129,000. Albion Financial Group UT bought a new stake in SK hynix during the third quarter worth $184,000. Boyd Wealth Management LLC acquired a new stake in shares of SK hynix in the third quarter valued at approximately $238,000. Finally, Leslie Global Wealth LLC bought a new position in SK hynix during the third quarter worth $243,000.

SK hynix Stock Down 1.6%

The company has a fifty day moving average of $169.05. The stock has a market cap of $1.18 trillion and a P/E ratio of 12.83. The company has a current ratio of 2.59, a quick ratio of 2.29 and a debt-to-equity ratio of 0.06.

About SK hynix

SK hynix Inc is a South Korean semiconductor company that develops and manufactures memory products and related semiconductor solutions. Its portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives, and high-bandwidth memory (HBM) used in computing, artificial intelligence, data centers, smartphones, automotive systems, and other electronic devices.

The company serves customers globally through manufacturing, research, sales, and support operations in South Korea and other major technology markets.

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