SK Hynix Stock Adds 5.4% as CoreWeave's Blowout Quarter Collides With a Wall Street Rethink on Memory Margins
Published on 11/11/2026 at 19:01 | Editorial boerse-global.de
SK Hynix shares climbed 5.4% on Tuesday, lifted by a broad rebound in semiconductor names and fresh foreign buying. The advance came as investors weighed buoyant AI infrastructure demand against a sharply divided analyst view on how long the current memory shortage can last.
CoreWeave set the tone. The AI cloud provider posted third-quarter revenue of $3.66 billion, up 168% year over year, and raised its 2026 revenue guidance to a range of $13.0 billion to $13.3 billion. Expectations surrounding a planned Anthropic IPO added to the upbeat mood.
Two Houses, Two Very Different Targets
Morgan Stanley cut its price target on SK Hynix to 1.6 million KRW from 2.6 million KRW — a reduction of roughly 38% — while keeping an "Overweight" rating. The move, reported Monday, reflects concern that rising memory supply and delays in data center construction after 2028 will erode pricing power.
Nomura sees it differently. The Japanese brokerage reaffirmed a 4.7 million KRW target, arguing that memory will remain in short supply through at least 2028. The gap between the two houses hinges on a single question: will new production capacity outrun the memory appetite of AI data centers?
Should investors sell immediately? Or is it worth buying SK Hynix?
A Higher Near-Term Forecast, a Lower Long-Term Bet
What makes Morgan Stanley's stance notable is its internal tension. The bank actually raised its 2027 operating profit forecast for SK Hynix by 13%, signaling greater confidence in the immediate business. The caution lies further out.
For the 2029–2035 period, Morgan Stanley trimmed its expected average operating margin from 53% to 28%. Its infrastructure assumptions also bake in a scenario where some planned data center capacity arrives later than scheduled — a drag if memory orders slip while new production lines ramp up.
Nomura's optimistic case, by contrast, requires the shortage to persist. Should AI buildout keep demand above available supply for longer, exceptionally high margins would flow into earnings estimates for an extended stretch.
Volume Locked In, Pricing Left Open
Underpinning the bull case, SK Hynix has struck agreements with 14 major customers covering more than half of its planned production capacity for 2027–2028, according to a Korea Herald report. Prices, however, remain tied to the market.
That structure secures volume as long as customers take delivery of the agreed quantities, but profitability on those shipments still depends on future supply conditions — precisely the fault line dividing the two brokerages.
SK Hynix at a turning point? This analysis reveals what investors need to know now.
Washington Push and a 100 Trillion KRW Return
Separately, SK Group said Monday that SK Hynix is preparing to expand its US workforce, with additional executive appointments and a reorganization of its American operations planned around December 3. The aim is to deepen ties with major US customers, Nvidia among them.
Back home, shareholders have something concrete to look forward to. SK Hynix has announced roughly 100 trillion KRW in distributions and other capital returns for 2026, including at least 30 trillion KRW in cash dividends and at least 60 trillion KRW earmarked for share buybacks and cancellation.
For now, the stock's 5.4% gain reflects enthusiasm for the AI trade. Whether that holds over the longer haul will depend on the margin trajectory — the single variable on which Nomura's optimism and Morgan Stanley's caution diverge most sharply.
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