Changes in US stocks | Storage concept stocks generally rose, SK Hynix (SKHY.US) rose more than 2%

The Zhitong Finance App learned that on Tuesday, the three major US stock indices opened higher, storage concept stocks generally rose, SK Hynix (SKHY.US) rose more than 2%, SanDisk (SNDK.US), Micron Technology (MU.US), and Seagate (STX.US) rose more than 1%, and Western Digital (WDC.US) rose slightly. According to the news, there are reports that SK Hynix and Samsung Electronics are in talks with Alibaba and Tencent to provide these two Chinese technology companies with more dynamic random access memory (DRAM) supplies for a period of 10 years, and the agreement period will continue until 2035.

Royal Bank of Canada Capital Markets (RBC Capital) predicts that SK Hynix's third quarter results, which will release financial reports after the market, will be slightly higher than market consensus expectations. Revenue is expected to reach 101.2 trillion won. The adjusted revenue for each American Depositary Receipt (ADR) is 8917 won (about 6.72 US dollars). Strong pricing capabilities are expected to hedge against negative factors brought about by the exchange rate: DRAM contract prices rose 20% month-on-month in the third quarter, and may rise another 15% in the fourth quarter. RBC believes that the DRAM upward cycle will continue for another 5 quarters on top of the 14 quarter period, and the tight supply situation is expected to continue until 2027.