[Featured Stock] "Short-term Buying Appeal"... SK Hynix Rebounds Over 5%

SK Hynix, which has experienced a recent downturn, is showing signs of a rebound. As of 12:31 PM on the 6th, SK Hynix was trading at 164,200 KRW, up 8,100 KRW (5.19%) from the previous trading day.

Recently, SK Hynix's stock price plunged 35% from its peak due to factors such as "increased macroeconomic uncertainty," "poor earnings from major U.S. tech companies like Amazon and Microsoft (MS)," and "the peak of AI semiconductor investments." On the previous day, SK Hynix closed at 156,100 KRW, down 9.87% from the prior trading day on the 2nd, and it had also dropped 10.4% on the 2nd compared to the day before.

On this day, Kiwoom Securities upgraded its investment opinion on SK Hynix to "buy," viewing it as a short-term buying opportunity. The target price was maintained at 200,000 KRW.

Park Yu-ak, a researcher at Kiwoom Securities, stated, "Although we have previously maintained a conservative investment opinion on SK Hynix, we believe that many of the related concerns have been largely reflected in the recent sharp decline in the stock price." He added, "At this point, attention should be paid to the fact that the 'deterioration in investment sentiment toward AI' could lead to a downward revision of next year's future capital expenditure (CapEx) plans by DRAM companies, which had been perceived as burdensome."

He continued, "If the 'belief in high growth of high-bandwidth memory (HBM)' and the 'expectation of recovery in general-purpose DRAM demand' turn into doubts, the burdensome DRAM CapEx plans will be revised downward, and the supply-demand situation for DRAM will be more robust than expected." He added, "It is necessary to view the long-term supply-demand outlook for DRAM more positively."

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