Tae Kim
· Key Context by Tae Kim
· July 10, 2026 at 12:57
· ⏱ 1 min read
| Read on Substack ↗
Summary
Tae Kim argues that SK Hynix ADR is attractively valued (forward P/E of 5) and poised to benefit from exploding HBM memory demand driven by Nvidia AI servers, expecting the US-listed ADR to trade at a premium to local Korean shares. This means investors should watch for a compelling entry point in SK Hynix as a pure-play on the HBM memory supercycle.
•SK Hynix ADR begins trading Friday under ticker SKHYV, switching to permanent ticker SKHY on Monday.
•Current forward P/E is 5, considered compelling despite a big rally in the stock.
•HBM memory dollar value per Nvidia AI server is expected to multiply dramatically in the coming years, with demand overwhelming supply.
•The author expects the ADR to trade at a premium to local Korean shares due to easier U.S. investor access and no currency conversion issues.
Read time1 min
Length1,397 chars
Categoryfinance
Ideas
Tae KimSenior writer, Barron's; author of The Nvidia Way
The entire article builds a bullish case for SK Hynix's ADR listing, citing strong HBM demand from Nvidia AI servers, low forward P/E, and expected premium over local shares. Although the author does
The entire article builds a bullish case for SK Hynix's ADR listing, citing strong HBM demand from Nvidia AI servers, low forward P/E, and expected premium over local shares. Although the author does not explicitly state a personal position, the argument implies a favorable long-term outlook for SK Hynix equity.
Risk: Valuation premium may not materialize if U.S. investors show less enthusiasm or if memory cycle turns; high customer concentration with Nvidia poses demand risk.