SK Hynix, Samsung Shares Soar Amid Chip Rebound; Samsung Denies US Listing Plans
Yahoo Finance ·
Major chip stocks, including Nvidia and Intel, rose on Tuesday, tracking gains in the broader market following a softer-than-expected inflation report.Barclays started coverage on SK Hynix’s U.S. stock with a $330 price target, forecasting a 71% upside.Stocktwits sentiment for SKHY remained ‘extremely bullish.’SK Hynix and Samsung shares jumped in Seoul on Wednesday, tracking a rally in U.S. semiconductor stocks the previous day and reinforcing signs that a chip-sector rebound is taking hold after the U.S.-Iran escalation rattled markets earlier this week. SK Hynix stock rose over 13% by afternoon local time, heading for its best move in over a month, while Samsung shares climbed 8%. Chip ReboundOn Tuesday, U.S. stocks closed higher, with Nvidia, Micron, and Intel gaining over 4%, after softer-than-expected U.S. inflation data and strong earnings from U.S. banks.The U.S. Consumer Price Index increased by a lower-than-expected 3.5% in the 12 months through June after surging 4.2% in May. The index fell 0.4% on a monthly basis. Banks kicked off the results season on a strong note. JPMorgan Chase reported a record quarterly profit, pushing its shares to an all-time high, while Goldman Sachs, Bank of America, and Citigroup all exceeded Wall Street's profit estimates.The gains in chip stocks come after weeks of volatility, as investors grappled with concerns over a potential slowdown in memory earnings growth and market triggers linked to the fresh escalation in the U.S.-Iran war.Barclays’ Bullish Note On SKHYStill, analysts remain bullish on the memory sector. Barclays initiated coverage of SK Hynix’s U.S. stock with an ‘Overweight’ rating and $330 price target, forecasting a 71% upside from the stock’s close on Tuesday.“We see some upside to gross margins nearer term but the biggest delta to Bloomberg consensus is materially higher 2027 revenues driven by HBM pricing uplift and SKHY’s strong position,” the investment research said in its note to clients.Meanwhile, Samsung denied reports speculating that it was planning to list its shares in the U.S., just as SK Hynix did last week. In a statement, Samsung said it is not reviewing the possibility of issuing American Depositary Receipts (ADRs).Retail View On SKHYOn Stocktwits, the retail sentiment for SKHY remained ‘extremely bullish,’ unchanged since its stock started trading on Nasdaq last Friday. “$SKHY It looks like it's hitting a resistance point, clearly taped. It could be the top signal. We can't trust the south koreans lol, they are known to rug the pops,” a trader wrote. SK Hynix raised $26.5 billion in its U.S. share sale, which topped the $25 billion raised by Chinese e-commerce giant Alibaba in 2014 and was the second biggest on record after SpaceX's $75 billion offering last month. For updates and corrections, email newsroom[at]stocktwits[dot]com.Read Next: OpenAI's First Hardware Product Is An AI Speaker? Report Reveals Details Amid Apple Lawsuit
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