Why is SK Hynix stock rallying today?
On Tuesday, SK Hynix stock saw a 2.5% increase, reaching ₩1,914,000, as global AI and semiconductor equities experienced a broad rally. This surge was driven by an exceptional performance on Wall Street the day before, which sparked investor enthusiasm for the sector. The latest AI success, Meta's personal AI agent, was also a key factor in the rally, as investors anticipate increased demand for chips and semiconductors.
The Nasdaq Composite reached a record high overnight, contributing to the positive sentiment across U.S. chips and tech stocks. Citi's recent research predicted a 52.9% year-over-year growth in enterprise SSD demand by 2027, driven by AI's continual learning and inference needs. The bank reaffirmed its Buy rating on SK Hynix, projecting NAND supply deficits of 6.1% in 2027 and 5.5% in 2028.
Furthermore, Samsung Electronics and SK Hynix are potential candidates to supply GDDR7 DRAM for Sony's PlayStation 6, creating a new avenue for high-volume consumer demand in advanced memory chips. Overall, the KOSPI index saw a 1.7% increase due to the rally in SK Hynix and its peers.
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