SK Hynix (SKHY), a memory chip maker, rose as much as 1.5% to ₩1,759,000 in Seoul on Thursday. The gain came after reports said its Solidigm flash-memory unit picked banks for a potential U.S. IPO. Samsung Electronics (SSNLF) also reported preliminary third-quarter operating profit of 107.4 trillion won, nearly nine times higher than a year earlier.

Bloomberg reported that Solidigm selected Goldman Sachs (GS) and Morgan Stanley (MS) to lead the potential IPO. The offering could raise about $10 billion and value Solidigm at as much as $100 billion. JPMorgan, Citigroup, and UBS have also been tapped to work on the deal.

Solidigm's Potential IPO Could Add Value to SK Hynix

The Solidigm IPO report is giving investors another reason to focus on SK Hynix's NAND business. A U.S. listing could help Solidigm raise capital as it expands its business in AI data centers.

The plans are still under review. SK Hynix said Solidigm is considering various options to strengthen its business. The company added that no specific plans have been confirmed.

Solidigm was formed in 2021 after SK Hynix acquired Intel's (INTC) flash-memory business. It now focuses on high-capacity solid-state drives used in AI data centers and cloud services.

Samsung's preliminary results also showed how strong the memory market has become. The company reported 107.4 trillion won in operating profit and 195 trillion won in revenue for the third quarter. However, both figures were below the average analyst forecasts cited by Bloomberg. The full third-quarter results are due on October 29.

Analysts Are Bullish on SK Hynix Stock

Earlier this week, Barclays analyst Simon Coles reiterated a Buy rating on SKHY with a $300 price target, implying more than 68% upside. He expects tight memory supply to support pricing. He stated that the next key catalyst will be SK Hynix's third-quarter earnings, when investors could get more details on shareholder return plans and capital spending.

Likewise, Wolfe Research analyst Chris Caso raised his SKHY price target to $250 from $200 while maintaining a Buy rating. He said his updated estimates reflect continued pricing gains across the memory market. Caso expects memory demand to stay above supply through at least 2028, which could support further price increases. He also estimates that SK Hynix could generate enough free cash flow in 2026 and 2027 to buy back shares worth about 32% of its market value.

Is SKHY Stock a Buy?

According to the Street's analysts, SKHY stock has a Strong Buy rating based on 11 Buys assigned in the last three months. SK Hynix's average price target of $254.70 implies over 43% upside from the current price.