JPMorgan States SK Hynix Stock Concerns Are Exaggerated, Forecasts Medium-Term Sentiment Improvement

JPMorgan asserts SK Hynix stock worries are overstated, citing early shareholder return plans and HBM competitiveness. Cumulative free cash flow expected to exceed 800 trillion won over three years.

Woofun AI reports that JPMorgan considers current market anxiety regarding SK Hynix's equity valuation to be disproportionate. The bank highlights the accelerated timeline for the shareholder return plan, now set for end of Q3, alongside sustained competitive positioning in HBM markets. JPMorgan projects cumulative free cash flow will surpass 800 trillion won over the next three years, bolstered by proceeds from Kioxia share sales, potentially elevating return levels above global peers. The firm also outlines approximately 54 trillion won in infrastructure investments, including the Yongin Y2 DRAM and Cheongju M17 NAND facilities. Regarding HBM4 pricing rumors, JPMorgan dismisses claims of a 50% discount as inaccurate, noting that 2026 HBM price increases may remain below 40% year-on-year as the company prioritizes high-margin DDR5, LPDDR5, and NAND contracts while managing long-term relations with NVIDIA.