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

Huo Xing Finance reports that on August 5, according to CNBC, SK Hynix has received coverage from multiple Wall Street investment banks following its U.S. listing. Cantor Fitzgerald has set a target price of $300, 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 default 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 target prices of $250, $240, and $200, respectively. Royal Bank of Canada expects the company’s operating margin to rise from 76% in the second quarter to 86% next year. Stifel noted key risks include product obsolescence due to technological advancements and excessive demand concentration among a few U.S. hyperscale cloud providers. SK Hynix’s American Depositary Receipts began trading on Nasdaq on a “when-issued” basis on July 10; according to Bank of America data, the company raised approximately $26.5 billion by selling 178 million shares.