Cantor Fitzgerald sets $300 target for SK Hynix ADR, predicting 100% upside

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Cantor Fitzgerald raised its price target for SK Hynix ADR to $300, indicating over 100% upside potential from its recent close of $142.72. The firm cited strong demand for DRAM, NAND, and HBM driven by AI infrastructure. Analyst C.J. Muse expects bit demand to exceed supply through 2029, with clients such as NVIDIA and Alphabet securing long-term contracts. Bank of America, Stifel, and RBC have also set price targets of $250, $240, and $200, respectively.
ME AI news: SK Hynix has received coverage from multiple Wall Street investment banks following its U.S. listing. Cantor Fitzgerald has set a $300 price target, representing over 100% upside from Monday’s closing price of $142.72, anticipating that AI infrastructure development will continue to drive demand for DRAM, NAND, and HBM. Cantor analyst C.J. Muse stated that bit demand for DRAM and NAND is likely to significantly outstrip supply through at least 2029. Customers such as NVIDIA and Alphabet are securing capacity through multi-year contracts that include volume commitments, price ranges, upfront payments, and penalty clauses, enhancing the profitability and order visibility of memory chip manufacturers. Other investment banks also remain bullish on SK Hynix, with Bank of America, Stifel, and Royal Bank of Canada setting price targets of $250, $240, and $200, respectively. Royal Bank of Canada expects the company’s operating margin to rise from 76% in Q2 to 86% next year. Stifel noted key risks include product obsolescence due to rapid technological evolution and demand overly concentrated among a few U.S. hyperscale cloud providers. SK Hynix’s American Depositary Receipts began trading on Nasdaq on July 10 via a follow-on offering, raising approximately $26.5 billion from the sale of 178 million shares, according to Bank of America data. (Source: BlockBeats)
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