Tech & AI
SK Hynix says its shares are undervalued after record AI memory profits
SK hynix's finance chief said the chipmaker's stock does not reflect its record AI-driven earnings, as the company laid out dividends and share cancellations for 2026.
Quick Read
- SK hynix's finance chief said the stock does not reflect the company's record earnings and cash flow.
- The company's US-traded shares surged 13.3% on Wednesday, adding $140 billion in market value.
- A 2026 plan pairs dividends with share cancellations to return cash to shareholders.
What did SK hynix say?
SK hynix's (Nasdaq: SKHY) chief financial officer said the company's stock is undervalued. The South Korean chipmaker argues its share price does not fully capture its earnings and cash flow.
Why it matters: The comments follow record quarterly revenue and operating profit. Operating profit is what the core business earns before interest and taxes. Strong demand for memory chips used in artificial intelligence systems lifted those results.
How did the shares move?
SK hynix's American depositary shares rose 13.3% on Wednesday. These are certificates traded in the U.S., under the ticker SKHY, that stand for shares of the foreign company. They closed at $164.70, up from $145.36.
The gain added $140 billion to the company's market value, which reached $1.2 trillion. Trading was heavy, with $8.2 billion worth of shares changing hands.
The broader market was calmer. The S&P 500 rose 0.3% and the technology sector fund gained 0.8%.
What is in the 2026 shareholder plan?
The company plans to return cash to shareholders through dividends and by cancelling shares during 2026. Cancelling shares cuts the number outstanding. Each remaining share then claims a bigger slice of future profits.
Management is betting these steps can help investors give more credit to the memory business. The undervaluation claim is the company's own view, not an outside verdict. Whether record profits last may depend on how long companies keep spending heavily on AI hardware.
For the wider economy, the advance estimate of third-quarter growth, an early official reading, is due Thursday, Oct. 29, at 8:30 a.m. ET.
For readers
What it could mean for you: This story reaches people who own SK hynix shares directly, including the US-traded SKHY shares. Owners of a lone chip stock carry the full effect of company news, with no other holdings to offset it. The 2026 plan could put cash in their hands through dividends, while share cancellations may raise each share's claim on profits. Their returns may still hinge on whether demand for AI memory chips holds up, and on whether the market comes to share the finance chief's view of value.
Questions and answers
Why does SK hynix say its stock is undervalued?
Its chief financial officer said the share price does not properly capture the company's earnings and cash flow. That view follows record quarterly revenue and operating profit tied to demand for AI memory chips.
What is SK hynix's shareholder-return plan for 2026?
The company plans to pay dividends and cancel shares during 2026. Cancelling shares lowers the share count, which can give each remaining share a larger claim on profits.
What are SKHY shares, and how do they work?
SKHY is the U.S. ticker for SK hynix's American depositary shares, certificates that let U.S. investors own a stake in the South Korean chipmaker. They closed at $164.70 on Wednesday.
The numbers
| SK hynix (SKHY) price | $164.70 |
|---|---|
| SK hynix (SKHY) change | +13.30% |
| SK hynix (SKHY) market value | $1.2 trillion |
| S&P 500 change | +0.28% |
| 10-year Treasury yield | 5.05% |
Wednesday’s close
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Not investment advice.
