[Weekly HOT Stocks] SK Hynix, Chosen by Foreigners and Institutions... Stock Price Surpasses 110,000 Won

From the 30th of last month to the 4th, foreigners net purchased SK Hynix shares worth 232.7 billion KRW

Photo by Yonhap News

[Asia Economy Reporter Kum Boryeong] SK Hynix attracted attention from foreign and institutional investors over the past week, with its closing price rising to 110,000 KRW.

According to the Korea Exchange on the 6th, from the 30th of last month to the 4th of this month, foreign investors purchased SK Hynix shares worth 232.7 billion KRW. SK Hynix ranked second among the top stocks in net purchases by foreign investors.

Institutional investors also showed strong interest in SK Hynix. During the same period, institutional investors net purchased SK Hynix shares worth 69.8 billion KRW. SK Hynix also ranked second among the top stocks in net purchases by institutional investors.

Thanks to the interest from foreign and institutional investors, the stock price showed an upward trend, closing in the 110,000 KRW range. On the 4th, SK Hynix’s closing price rose 3.14% (3,500 KRW) from the previous trading day to 115,000 KRW. The closing price, which was 98,800 KRW on the 27th of last month, briefly dipped to 97,500 KRW on the 30th, but then rose to 100,500 KRW on the 1st, 109,000 KRW on the 2nd, and 111,500 KRW on the 3rd.

The semiconductor sector is experiencing improved demand and price outlooks for DRAM. Prices are expected to rebound early next year, which is anticipated to raise SK Hynix’s annual performance forecasts. Hyundai Motor Securities revised SK Hynix’s revenue and operating profit forecasts for next year upward by 5.7% and 29.1%, respectively, to 36.1 trillion KRW and 8.7 trillion KRW, reflecting changes in DRAM price forecasts for the second quarter and beyond.

The effects of the Intel NAND acquisition are also expected to appear by the end of next year. Do Hyunwoo, a researcher at NH Investment & Securities, explained, "The acquisition of Intel’s NAND business is positive in the long term. Intel leads PC and server architecture design and standards. It has advanced embedded data center, software, and firmware controller technology." He added, "With the acquisition of Intel’s NAND business, SK Hynix can simultaneously secure the previously lacking data center portfolio, core patents, and a diverse customer base. The revenue increase effect from acquiring Intel’s Dalian fab will begin in earnest from the fourth quarter of next year. NAND segment revenue in 2022 is expected to reach 12.6 trillion KRW, a 115% increase compared to this year."

This content was produced with the assistance of AI translation services.