Is SK Hynix (KOSE:A000660) Still Undervalued As It Expands Its Cheongju AI Plant?

SK hynix (KOSE:A000660) is back in focus after its board approved a larger investment for the P&T7 advanced packaging plant in Cheongju, which is aimed at supporting AI memory semiconductor production.

See our latest analysis for SK hynix.

SK hynix's latest investment decision comes after a huge run in the stock, with the share price at ₩1,759,000 and a year to date share price return of 159.82%. The 1 year total shareholder return is very large and the 5 year total shareholder return is more than 15x. However, the share price has fallen 39.70% over the past month, suggesting momentum has cooled in the short term even as longer term performance remains very strong.

If SK hynix’s AI push has your attention, it could be a good moment to look across the broader AI value chain and see what stands out in the 55 AI infrastructure stocks.

After such a steep multi year climb in SK hynix followed by a sharp pullback, the larger Cheongju AI investment puts the spotlight squarely on one key question: does the current valuation still offer an attractive trade off for new buyers?

Most Popular Narrative: 48.4% Undervalued

The most followed narrative on SK hynix compares a fair value of ₩3,408,502 to the last close at ₩1,759,000, framing the Cheongju expansion inside a much larger AI memory earnings story.

Accelerating demand for high-performance memory solutions, particularly HBM and next-gen DRAM, as AI workloads and advanced reasoning models proliferate, is expected to sustain double-digit revenue growth and expand margin through premium pricing on leading products.

Read the complete narrative.

Want to see what sits behind that confidence in SK hynix? Revenue, earnings and margins are all modeled to move in lockstep. The twist is how future valuation multiples are expected to compress even as profits scale. Curious which assumptions have to hold for that fair value to stack up?

Result: Fair Value of ₩3,408,502 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, tighter than expected memory supply or a setback in SK hynix’s high bandwidth products could quickly challenge the current undervalued narrative that investors are watching.

Find out about the key risks to this SK hynix narrative.

Next Steps

With SK hynix presenting both strong optimism and clear concerns, take a moment to review the full picture for yourself. You can start with the 4 key rewards and 2 important warning signs.

Looking for more investment ideas beyond SK hynix?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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