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    SK hynix (KOSE:A000660) Reviews Chongqing Plant Sale, Is The AI Memory Upside Enough?

    Simply Wall St·08/19/2026 22:38:03
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    Investors are watching SK hynix (KOSE:A000660) after reports that it may sell a packaging plant in Chongqing, China, as the company reviews options to focus more on higher margin AI memory products.

    See our latest analysis for SK hynix.

    The Chongqing packaging review comes after a sharp pullback in SK hynix's share price, which has fallen about 15% over the past month and around 23% over the past quarter, even though the year to date share price return is 121.57% and the 1 year total shareholder return is very large. Recent announcements about multi year fab investments in Yongin and Cheongju, along with a confirmed quarterly dividend, frame this plant discussion as part of a broader reset of capital allocation and risk.

    If AI memory is on your radar, this could be a good moment to widen your watchlist with other chip related opportunities and scan the 55 AI infrastructure stocks.

    Bulls see SK hynix recycling capital into higher margin AI memory at a steep apparent discount. Bears focus on execution risk in China and heavy long term fab commitments. Which side does the current valuation lean toward as the stock resets?

    Most Popular Narrative: 52.8% Undervalued

    SK hynix last closed at ₩1,500,000, while the most followed narrative anchors fair value at about ₩3,179,719. That gap is built on an aggressive AI memory earnings story and a specific view on margins and cash flows.

    Accelerating demand for high-performance memory solutions, particularly HBM and next-gen DRAM, as AI workloads and advanced reasoning models proliferate. This 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 underpins that valuation gap? The narrative leans on rapid revenue expansion, high profitability, and a future earnings multiple that assumes SK hynix can keep up its AI memory edge. Curious which specific growth and margin paths are built into those cash flow forecasts.

    Result: Fair Value of ₩3,179,719 (UNDERVALUED)

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

    However, SK hynix still faces meaningful risks, including heavy long term fab investment commitments and potential geopolitical or regulatory shocks around its China operations that could unsettle this narrative.

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

    Next Steps

    With SK hynix caught between bullish AI optimism and concerns about execution and capital intensity, it can be helpful to move quickly and evaluate the data directly using the 4 key rewards and 2 important warning signs.

    Looking for more SK hynix style investment ideas?

    If you are interested in SK hynix, you probably do not want to stop with a single stock. Use focused screeners to spot other opportunities that fit your approach.

    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.