SK hynix: This Could Be The Deal Of The Decade

SK hynix is initiated at a strong buy, citing accelerating growth, expanding margins, and robust AI-driven demand. Q2 revenues soared 257% YoY, with DRAM and NAND ASPs rising and net income up 1,242% YoY despite top line and operating profit underperformance vs. estimates. Forward P/E remains in the single digits, with a major share buyback announced, indicating deep undervaluation and management confidence. Risks include declining DRAM market share, rising competition from CXMT, and potential labor union pressures, but the risk/reward remains asymmetrically favorable.