SK hynix (SKHY.US) Climbs Over 4% Premarket as Nomura Argues Memory Pricing Is Fundamentally Misjudged

Stock News11-02 22:02

On Monday, SK hynix (SKHY.US) rose more than 4% in premarket trading to $155.38.

On the news front, South Korea's October chip exports nearly doubled, marking the largest increase in more than 50 years. South Korean President Lee Jae-myung pledged to make bold investments in artificial intelligence to boost the country's economic growth potential.

A recent report from Nomura Securities argues that the market's pricing of the memory sector reflects a fundamental misjudgment, with current valuations implying an assumption that earnings have peaked. The institution estimates that South Korean memory giants Samsung Electronics and SK hynix (000660.KR) are trading at forward price-to-earnings ratios of only about 2-3 times for 2027, representing an 85-90% discount to tech giants.

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