SK Hynix's Chairman Breaks His Own Rule — and the Stock Responds With Its Sharpest Rally in a Decade
Published on 07/31/2026 at 14:32 | Redaktion boerse-global.de
There is a threshold in South Korean insider-trading law that most executives treat as a compliance detail. For SK Group chairman Chey Tae-won, it became a strategic decision. By keeping his personal purchase of SK Hynix shares just under the 5 billion won mark that would trigger a mandatory 30-day pre-disclosure, Chey was able to send an immediate signal to a market that had spent weeks punishing the memory-chip maker.
The message landed with force. On Friday, SK Hynix shares surged 29.95 percent to 1,718,000 won, hitting the upper daily price limit for the first time since 2015. The move came just a week after the stock had been trading more than 40 percent below its June record high of 2,987,000 won.
A Small Buy With an Outsize Message
Chey acquired 3,620 common shares on July 30 at the previous day's closing price of 1,322,000 won — an outlay of roughly 4.79 billion won, or about 3.3 million euros. For a company with nearly 88 trillion won in cash reserves, the sum is negligible. But the timing and structure of the trade carried weight: had the purchase exceeded 5 billion won, Chey would have been required to file a pre-trade disclosure and wait 30 days. By staying under the limit, he bought himself the ability to act instantly.
Market participants read the move as a deliberate statement of confidence — a personal endorsement of "responsible leadership" after weeks of heavy losses. It was the first time in his career that Chey had personally bought shares of his own company.
Should investors sell immediately? Or is it worth buying SK Hynix?
Record Numbers That Couldn't Calm Nerves
The irony of SK Hynix's recent slide is that it was triggered by some of the best results in the company's history. For the second quarter, the company reported an operating profit of 60.54 trillion won, up 557 percent year over year, on revenue of 79.32 trillion won — a 257 percent increase. Operating margin hit a record 76 percent.
Yet the market's reaction was muted at best. Analysts had been looking for revenue closer to 84 trillion won, and the company missed consensus operating profit estimates of 64.2 trillion won. Reports attributed the shortfall to delivery delays in advanced DRAM, which temporarily limited price increases. A significant portion of the bottom line also came from non-operating sources: 63.3 trillion won in revaluation gains and stake sales, primarily the company's holdings in Japanese chipmaker Kioxia. Net profit came in at 93.92 trillion won, more than twelve times the year-ago figure — but the quality of those earnings raised questions.
The market's skepticism deepened when SK Hynix raised its capital expenditure plan by roughly half to at least $31 billion. Management framed the increase as a response to sustained AI-driven demand, but investors initially read it as margin pressure in the making.
A Broader Market Turn
Friday's surge at SK Hynix unfolded against an extraordinary session for the entire South Korean market. The KOSPI index jumped 17.91 percent to 6,595.45 points — its largest single-day gain on record. Foreign investors bought a net 7.2 trillion won, while retail investors sold a record 8.27 trillion won.
The catalyst came from across the Pacific: quarterly results from Microsoft and Amazon the previous day had reignited enthusiasm for artificial intelligence investment. The rebound marked a sharp reversal from a brutal stretch that had made July the weakest month for the broader market since 2008 — or 1997, depending on the calculation — as concerns mounted over overheated AI valuations, competition from Chinese chipmakers, and the risks posed by leveraged ETFs.
Over the trailing 30 days, SK Hynix shares remain down 32.89 percent, and the stock still sits 42.48 percent below its 52-week high.
Analysts Split on the Path Ahead
Wall Street's view of SK Hynix is divided. UBS initiated coverage of the company's American Depositary Receipts in late July with a "Buy" rating and a $204 price target. Analyst Nicolas Gaudois pointed to expected DRAM bit-demand growth of 36 percent in 2027, up from 22 percent this year, and roughly ten long-term supply agreements with US hyperscalers and manufacturers. UBS sees the memory shortage persisting through 2028.
SK Hynix at a turning point? This analysis reveals what investors need to know now.
Barclays, meanwhile, trimmed its price target from $330 to $300 while maintaining its buy recommendation. The average analyst target on Wall Street stands at $252.
The Chinese Question
Adding to the complexity is the rise of Chinese memory maker CXMT. Following an initial public offering in late July that raised 12.56 trillion won, CXMT now holds an 8 percent share of the global DRAM market — more than double its share a year ago. SK Hynix continues to dominate the HBM segment with a 58 percent share, and analysts estimate CXMT trails by three to four years in that technology. But the competitive dynamics are shifting, and investors are increasingly asking how long SK Hynix can maintain its pricing power during the current supply crunch.
For now, the company is pressing its advantage. Mass shipments of HBM4 have begun, and initial HBM4E samples have been delivered to customers. Management has signaled favorable pricing trends for high-bandwidth memory in coming quarters. SK Hynix also proposed restructuring its compensation system to allow temporary salary adjustments in loss-making years, while expanding the bonus pool in anticipation of an annual profit of roughly $170 billion. The company listed its shares on Nasdaq as American Depositary Receipts in early July.
The question now is whether Friday's historic rally marks a turning point or merely a pause in a broader correction. The chairman's personal bet suggests he believes in the former. The market's response suggests investors are willing to give him the benefit of the doubt — at least for a day.
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