US Stocks Movement | SK Hynix (SKHY.US) early trading surge expands to 5%, hitting new listing high

According to Jinse Finance APP, on Wednesday, SK hynix (SKHY.US) saw its early trading gains expand to 5%, hitting a new all-time high, currently trading at $195.36 with a total market capitalization of $1.43 trillion. According to reports, on September 8th, S&P Global Market Intelligence's latest forecast shows that, driven by strong demand for AI storage chips, SK hynix is expected to announce a new round of share buybacks in the fourth quarter of this year, with the scale expected to range between 20 trillion to 40 trillion Korean won (approximately $28 billion). Even after completing this massive buyback, the company still has the ability to pay generous dividends, providing another strong catalyst for the "Value-up" initiative promoted by the South Korean government and further restructuring shareholder returns.

In addition, South Korea's KB Securities released a research report on September 7th stating that the current DRAM and NAND inventory at Samsung Electronics and SK hynix has dropped to less than 10 days. Next year, bit demand for DRAM and NAND is expected to exceed supply by more than 10 percentage points, which could lead to the depletion of actual salable memory chip inventories. Kim Dong-won, Head of Research at KB Securities, characterized this situation as a "historic shortage." The firm also noted that the share prices of Samsung Electronics and SK hynix have fallen by 38% from their three-month highs, and next year's price-to-earnings ratio is only around 3 times, which is considered "extremely undervalued." KB Securities designated both companies as top picks in the semiconductor sector and expects a strong revaluation rally to begin soon.