SK Hynix Surges 13% as AI Memory Shortage Deepens
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- SK Hynix shares jumped as much as 12.7% in morning Seoul trade on Wednesday, with the benchmark KOSPI up 7.0%
- SK Hynix ADRs surged nearly 28% to $193.92 on Nasdaq on Tuesday, a day after Barclays launched coverage with an "overweight" rating and a $330-a-share price target
- Barclays placed its $330 price target on SK Hynix's newly listed ADRs, implying roughly 70% upside from the $193.92 close
- The June US CPI report showed inflation cooled more than analysts expected, partly due to abating energy prices amid progress in US-Iran peace negotiations
- Kim Sunwoo at Meritz Securities said DRAM suppliers are meeting only 75-80% of demand in H2 2026, with the fulfillment rate potentially falling to the 60% range in 2027
- SK Hynix CEO Kwak Noh-jung warned the global memory industry faces its worst-ever supply shortage in 2027, with demand exceeding production capacity well beyond 2030
- Investors have questioned whether slowing capital spending by major US cloud providers and multi-billion-dollar capacity expansions by memory makers could eventually ease the supply-demand imbalance
Why it matters: SK Hynix's bull case now rests on a hard supply number: DRAM suppliers meeting just 75-80% of demand in late 2026, with Barclays' $330 ADR target implying ~70% upside from the $193.92 close. The thesis breaks if US cloud capex pulls back or memory makers' multi-billion-dollar capacity expansions come online faster than the 2027 worst-case shortfall Kwak has projected.
