Stocks
SK Hynix's AI Euphoria to Fatigue Transition: New Volatility Wave in Chip Sector
724FinanceAhmet Arslan
SK Hynix shares experienced a 12% decline following Wednesday's near 9% jump, as AI euphoria shifts to fatigue. The company's inability to meet rising demand due to production capacity constraints is cited as the primary factor. Market analysts predict a 20% decline in net profit for the 2024 fiscal year. This development forces SK Hynix to reassess its competitive positioning in the semiconductor market.
The DCF model for SK Hynix shows a 25% value erosion. This is evident when projecting a 200 billion KRW cash flow for the 2025 fiscal year.