SK Hynix Inc 000660
Toll collector on the world's growing appetite for data, whose edge lasts only while it stays ahead on memory technology and cost.
Valuation holds this up; Moat is the soft spot.
| Moat | 5.0 |
| Management | 7.0 |
| Valuation | 8.0 |
| Risk · 10 = lowest | 6.0 |
| Business model | 7.0 |
| Optionality | 6.0 |
The price needs 1.8% growth a year for ten years. The AI thinks 30.0% is achievable, at a 45.0% margin.
SK Hynix trades at under 5x earnings because investors know memory profits are cyclical and are near a record peak. Customers have contracted most of its 2027-28 output and say supply is sold out through 2029, so profits should stay very high for a few years. The risk is that new factories from SK Hynix, Samsung and Micron arrive around 2028-29 and prices fall, so we assume margins normalize well below today's level. Even then the price looks low relative to earnings power, but this is a cyclical bet, not a steady compounder.
SK hynix Inc. through its subsidiaries, engages in research, develops, manufactures, distributes, and sells semiconductor devices in Korea, China, rest of Asia, the United States, Europe, and internationally. It offers DRAM, such as server memory, graphics memory, mobile memory, PC memory, consumer memory; NAND flash memory; SSD; and MCP products. It also engages in foundry business, produces non-memory semiconductors. The company serves its products for server, networking, mobile, personal computer, consumer, and automotive applications. The company was formerly known as Hynix Semiconductor Inc. and changed its name to SK hynix Inc. in March 2012. SK hynix Inc. was incorporated in 1949 and is headquartered in Icheon-si, South Korea.
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