SK hynix: Explosive 500%+ Growth

SK hynix Inc. delivered over 250% YoY revenue growth and 500%+ profit growth in Q2, driven by AI-fueled memory shortages. SKHY achieved a gross margin of 83% and an operating margin of 76%, with sequential operating profit up 61%. Management guides for continued strong bit growth and pricing tailwinds in Q3, with long-term agreements reducing future volatility. At $130 per ADR, SKHY trades at an undemanding valuation given forecasted $101 cumulative EPS through 2028, but volatility and AI risk remain. SK hynix Inc. ( SKHY ) is one of the biggest memory companies in the world and has just reported strong Q2 results, with explosive profit growth of more than 500% thanks to This article was written by Jonathan Weber 54.21K Followers Follow Jonathan Weber holds an engineering degree and has been active in the stock market and as a freelance analyst for many years. He has been sharing his research on Seeking Alpha since 2014. Jonathan’s primary focus is on value and income stocks but he covers growth occasionally. He is a contributing author for the investing group Cash Flow Club where along with Darren McCammon, they focus on company cash flows and their access to capital. Core features include: access to the leader’s personal income portfolio targeting 6%+ yield, community chat, the “Best Opportunities” List, coverage of energy midstream, commercial mREITs, BDCs, and shipping sectors,, and transparency on performance. Learn More. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SKHY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.