Svmuu News: South Korean brokerages are sharply divided on SK Hynix’s outlook, with the core disagreement centered on whether AI storage demand can drive long-term growth.KB Securities maintains a “Buy” rating on SK Hynix. Drawing on the precedent set byTSMC’s 1997 ADR offering in the U.S., the firm believes that SK Hynix’s ADR listing will increase global investor participation and is expected to drive a revaluation of both the ADR and the underlying Korean shares in tandem.KB Securities also forecasts that global DRAM and NAND wafer production capacity growth in 2027 will be only 7% and 4%, respectively—lower than the 17% and 19% growth rates in demand—and that memory supply shortages may intensify further compared to 2026.
BNK Investment Securities, however, believes that the rationale behind hyperscale cloud service providers’ continued ramp-up of AI infrastructure investment is weakening, and that the ADR listing will not significantly alter the valuation of SK Hynix’s domestic shares. (Etoday)