BN · rank #8 · 2026-09-04
SKHY
NASDAQ · $1.16T (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.69 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +53.1% |
| Forward net margin Consensus forward net margin. | +72.5% |
| Net margin TTM Trailing twelve month net margin. | +85.6% |
| Margin expansion Forward minus trailing net margin (percentage points). | -13.1% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 0.24 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.23× |
| Analyst upside Spread between the consensus 12m target and the current price. | +51.1% |
| Last EPS surprise Most recent reported EPS versus consensus. | +71% |
| Market cap (USD) | $1.16T |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
SK Hynix is the world's dominant HBM memory supplier, holding over 50% share of high-bandwidth memory used in AI accelerators, with HBM3E/HBM4/HBM4E as its core product franchise serving NVIDIA and major AI infrastructure buildouts.
Rationale
SKHY screens as a textbook bottleneck-solver — it is the single most constrained chokepoint in AI accelerator supply chains, with >50% HBM share, long-term customer agreements providing revenue visibility, 53% forward revenue growth, a 0.24 forward PEG, and a 71% EPS surprise confirming the thesis is already converting to earnings rather than riding sentiment.
Material risks
- 1US export-control tightening on SK Hynix's Chinese fabs (annual license regime replacing waivers) could force capacity write-downs or production disruptions at a meaningful revenue contributor, directly impairing the supply-chain moat that underpins the bottleneck thesis.
- 2Aggressive HBM capacity additions by SK Hynix itself plus Samsung and Micron risk converting today's structural shortage into oversupply by 2027-2028, compressing the pricing power and margin profile that justify the current valuation multiple.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.