BN · rank #5 · 2026-10-19
SKHY
NASDAQ · $994.83B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.81 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +54.4% |
| Forward net margin Consensus forward net margin. | +71.7% |
| Net margin TTM Trailing twelve month net margin. | +85.6% |
| Margin expansion Forward minus trailing net margin (percentage points). | -14.0% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 0.28 |
| 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. | +84.8% |
| Last EPS surprise Most recent reported EPS versus consensus. | +71% |
| Market cap (USD) | $994.83B |
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 dominant HBM memory supplier powering AI accelerators, holding ~58% HBM market share with validated sole-source or lead-supplier status for Nvidia and Microsoft workloads.
Rationale
The bottleneck-solver signal is structurally reinforced — SKHY directly resolves the memory-bandwidth constraint in AI inference and training, backed by ~10 long-term customer agreements, a 76% operating margin, 257% YoY revenue growth, and a 0.28 forward PEG implying the market has not fully priced the HBM4 ramp.
Material risks
- 1Samsung and Micron are both qualifying as HBM4 suppliers for Nvidia's Vera Rubin platform, directly threatening SK Hynix's near-sole-source position — the single most thesis-breaking event would be Samsung achieving full Vera Rubin qualification at scale, compressing both share and pricing.
- 2U.S. export-control restrictions on SK Hynix's Dalian fab limit capacity optionality and create geopolitical supply-chain disruption risk precisely when the company needs to ramp HBM4 production to meet long-term agreement commitments.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.