SK Hynix Jumps 6% as Asia Buys Back Into AI
Anthropic's surprise IPO filing lit a fire under Seoul chip stocks, sending SK hynix surging as foreign investors piled in. Whether that momentum survives earnings on October 28 depends on one unconfirmed announcement that could change everything.
SK hynix (NASDAQ:SKHY) was up about 6% to 8% in Tuesday trading in Seoul on October 27. It opened at 1.357 million won, up 6.43%, and reached 1,380,000 won by 10:46 a.m. That was an 8.24% gain from the October 26 close of 1,275,000 won.
The New York shares moved first. SK hynix trades in the U.S. as American depositary shares, which are U.S.-listed receipts for the Korean stock. They closed October 26 at $142.62, up 4.09%, and then added 1.77% after hours to $145.15. Micron Technology (NASDAQ:MU | MU Price Prediction) rose 2.98% to $903.70.
Both stocks are still well below where they traded a month ago. SK hynix’s ADSs are down 25.55% over that period, and Micron is down 16.49%, so a rebound needs a reason to hold. SK hynix will provide the first test on October 28, when it reports third-quarter results.
What Sent Seoul Chip Stocks Higher on October 27
On October 26, the Philadelphia Semiconductor Index rose 2.82%, and the Nasdaq gained 0.82%. Korean market coverage linked the chip buying to Anthropic, which filed an S-1 registration statement on October 26 for a proposed Nasdaq listing under the symbol “ANT”. The company has not yet set the number of shares or the price range, so it has not priced the IPO.
Korean summaries of the filing put Anthropic’s first-half revenue at about $16.29 billion, up around 1,300%. They said its operating loss narrowed to about $700 million from $2.14 billion. SK hynix benefits only indirectly, because fast-growing AI labs need servers built with high-bandwidth memory (HBM), which is stacked DRAM placed next to AI processors. The same expansion pulls in the power, cooling, and networking suppliers we rounded up in a free report on seven AI stocks that aren’t chipmakers, here.
At 10:48 a.m., the KOSPI was at 5,731.55, up 4.79%. In early trading, foreign investors were net buyers of 156.2 billion won, while retail investors were net sellers of 118.6 billion won.
What the Rally Means for SKHY and Micron Holders
In the second quarter, SK hynix reported preliminary revenue of KRW 79.32 trillion and operating profit of KRW 60.54 trillion. Revenue missed expectations, coming in below the consensus estimate of around KRW 84.12 trillion.
SK hynix also reportedly plans a special dividend of about 16 trillion won (about $12 billion). That would return about 80% of an estimated 20 trillion won in gains from selling part of its Kioxia stake. A spokesperson declined to comment, and any announcement could come with earnings.
For Micron, the Seoul rally changes sentiment more than the business. The company reported fiscal fourth-quarter revenue of $54.23 billion, and more than 75% of its fiscal 2027 shipments are already committed.
Reality Check on a Market Priced at 4x Earnings
Goldman Sachs (NYSE:GS) cut its 12-month KOSPI target to 9,000 from 12,000, but it still expects more than 60% upside. Its strategists said memory share prices reflect expectations that “earnings will fall 65% next year.” The KOSPI trades at about 4x forward earnings, the lowest of 18 major markets. Micron said it expects tight market conditions to be “supportive through ’28,” which points away from such a sharp earnings fall.
Mirae Asset Securities analyst Seo Sang-young warned that AI chip demand could slow next year. He said the more a stock is priced for continued acceleration, “the greater its risk of a valuation reassessment as investment growth slows.” Korean retail investors selling into the rally suggests they agree.
What Could Decide SKHY’s Next Move After Earnings
On this evidence, the market appears to price in a sharper earnings fall than Micron’s outlook implies. Its market is priced for a 65% earnings drop, while its closest U.S. peer has most of next year’s shipments committed and expects prices to stay firm. The reported dividend would pay out cash no matter where memory prices go, but it is only real once the board announces it.
Micron reports results in dollars, which removes exposure to the won. However, Micron is up 216.88% in 2026, so less of the discount reflected in SKHY is left in its price.
SK hynix reports before 9 a.m. Seoul time on October 28. If the special dividend is confirmed and SKHY stays above its October 26 close of $142.62, the rebound has a real basis. If there is no dividend and SKHY falls below that level, the October 27 move was a relief rally.
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Omor Ibne Ehsan is a writer at 24/7 Wall St. He is a self-taught investor with a focus on growth, cyclical, and dividend equities that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as penny stocks.
