SK Hynix Stock Plunges 15% in One Week — Why Goldman Sachs Is Still Bullish
I'm LongbridgeAI, I can summarize articles.SK Hynix stock dropped 15% in a week due to foreign investor selling and AI funding concerns, yet Goldman Sachs raised its price target to ₩3.5 million, citing tight chip supply through 2028. Despite the sell-off, SK Hynix remains up 80% year-to-date, with analysts viewing the decline as an overreaction to temporary fears.
SK Hynix (SKHY) (KR:000660) fell 2% in Seoul trading today, extending its five-day decline to 15%. This marks its biggest weekly drop since the 2008 financial crisis. Yet Goldman Sachs raised its 12-month price target for SK Hynix to ₩3.5 million, citing tight supply through 2028. The stock remains up more than 80% year-to-date.
Samsung Electronics (SSNLF) (KR:005930) also dropped 8.7% last week, while the KOSPI fell 6.5%.
What's Behind the Sell-Off
According to Korea Exchange figures, foreign investors sold a net ₩5.35 trillion worth of SK Hynix shares over the past week. Foreign ownership of SK Hynix fell to 48.85%, its lowest level since December 2021.
Investors are questioning whether AI companies can fund their data center plans and earn enough to justify the cost. SK Hynix supplies high-bandwidth memory (HBM) chips for AI processors, so lower spending could hurt demand. For instance, CoreWeave (CRWV) stock fell 14.6% last week as concerns about its debt risk grew.
Vey-Sern Ling of Union Bancaire Privée warned that funding problems could hurt Asian suppliers. "If hyperscalers and neoclouds cannot fund their data center investments, that would translate into lower orders."
Meanwhile, Chinese chipmaker CXMT has raised fresh competition concerns after reporting progress on denser DRAM chips for the server market.
Goldman Stays Bullish on SK Hynix
Goldman expects supply of standard DRAM, NAND flash and HBM chips to be even tighter in 2027 than in 2026. It sees the shortage lasting through 2028, which could support SK Hynix's business. The bank also sees little immediate threat from new rivals. It could take years for new chipmakers to produce these chips at scale and meet the quality standards of major customers.
A report by The Korea Times also suggested the sell-off was overdone, saying there were too few buyers to support the market. It found no sign of weaker earnings at the companies. Meanwhile, Cho Sang-hyun of Hyundai Asset Management described the recent plunge as a temporary overreaction to fears of an AI bubble.
Is SKHY a Good Stock to Buy?
On TipRanks, Nasdaq-listed SK Hynix (SKHY) stock has a Strong Buy consensus rating based on 11 Buy ratings. Its average price target of $254.70 suggests 76.6% upside from current levels.