SK Hynix at below $130 seems low especially after CXMT's historic IPO

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Author argues SK Hynix below $130 is undervalued relative to CXMT's post-IPO valuation given SK Hynix's much larger revenue scale and durable AI-memory demand.

000660.KS — LONG The author argues SK Hynix below $130 is a temporary dip because its ~$730-750B market cap is only about 1.5x CXMT's ~$484B despite SK Hynix's quarterly revenue being roughly 5x CXMT's. The author believes AI-memory demand remains durable and SK Hynix can hold a meaningful HBM lead, making the relative valuation gap too small. The stated bear case is that memory is cyclical, CXMT may keep taking share, and China may assign a strategic premium to its domestic memory champion.

But I believe AI-memory demand remains durable and SK Hynix can hold a meaningful HBM lead, SKHY below $130 seems like a temporary dip.

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u/twinparty Reddit r/stocks

SK Hynix undervalued vs CXMT on AI-memory

The author argues SK Hynix below $130 is a temporary dip because its ~$730-750B market cap is only about 1.5x CXMT's ~$484B despite SK Hynix's quarterly revenue being roughly 5x CXMT's. The author believes AI-memory demand remains durable and SK Hynix can hold a meaningful HBM lead, making the relative valuation gap too small. The stated bear case is that memory is cyclical, CXMT may keep taking share, and China may assign a strategic premium to its domestic memory champion.

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