Wall Street Strategists Challenge CXMT Narrative as SK Hynix Losses Deepen
Published on 10/17/2026 at 10:31 | Editorial boerse-global.de
A 24% seven-session slide has turned SK Hynix into a battleground between momentum sellers and some of the biggest names in equity research. The South Korean memory giant closed Friday at 1,272,000.00 KRW, a modest 0.8% gain on the day but a bruising stretch that has left the stock 57% below its 52-week high.
The trigger was a presentation in Shanghai by CXMT president Cao Kanyu, who outlined progress on a novel 4F² DRAM cell architecture and said the Chinese firm aims to launch a DDR5-RDIMM server module by year-end. SK Hynix shares fell more than 10% intraday in Seoul on Tuesday as investors priced in fresh price and competitive pressure in DRAM. Broader caution over future artificial intelligence spending added to the gloom, and foreign investors have been heavy net sellers on the Seoul exchange.
Citi and Goldman Dismiss Supply Threat
Citi's analysts see the CXMT headline risk as overstated. Mass production on the 4F² architecture is unlikely before 2028, they argue, and CXMT remains four generations behind the leading DRAM manufacturers. The fear of an imminent supply glut in high-performance memory does not hold up against that gap.
Goldman Sachs takes a similar line, calling SK Hynix's risk-reward profile attractive and describing market concern about CXMT closing the technology gap as significantly overdone. Bank of America, meanwhile, frames the selloff as a straightforward overreaction. On 2027 and 2028 earnings estimates, the stock trades at a price-to-earnings ratio of just 2 to 3 — versus the 4 to 7 range typical of previous memory upcycles. BofA expects firm prices, revenue and margins through 2028, and flags the possibility of a special dividend alongside the company's quarterly outlook on October 28.
Should investors sell immediately? Or is it worth buying SK Hynix?
What the market is witnessing, in that reading, is a repricing of risk rather than a sudden deterioration in operating earnings power.
Earnings Forecasts Moving the Other Way
Attention is swinging back to demand fundamentals, particularly in AI. Analyst Han Dong-hee of SK Securities said Thursday that profit estimates for next year are being revised upward on a tightening memory supply picture and rising prices for High Bandwidth Memory. Third-quarter 2026 results are expected in late October, with October 27 and 28 cited in financial circles.
SK Hynix used the OCP Global Summit to remind the market of its technology lead. The company presented its MARS architecture and a second-generation 256-gigabyte CXL-3.2 memory module for data centers, claiming more than double the bandwidth and roughly 30% better energy efficiency than its predecessor.
Solidigm Listing and Dalian Permissions
Beyond the trading floor, the company is pushing ahead with strategic moves abroad. Media reports say its US subsidiary Solidigm is considering an initial public offering in the United States as early as next year to raise additional capital. SK Hynix is also in talks with US authorities over permits for manufacturing equipment at its Dalian plant in China, stressing that the planned installations will not expand existing production capacity there.
Ad
SK Hynix Stock: New Analysis - 17 October
Fresh SK Hynix information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
