SK Hynix headquarters in Icheon, Gyeonggi Province, on July 29. [Yonhap]
SK Hynix headquarters in Icheon, Gyeonggi Province, on July 29. [Yonhap]

Wall Street firms initiated coverage of SK Hynix's American depositary receipts (ADR) on Tuesday, issuing "buy" or "overweight" ratings on the chipmaker.

At least six financial firms, including Bank of America, had launched research notes on SK Hynix's ADR by Tuesday, all with buy or overweight recommendations, according to Reuters.

In its inaugural note, Bank of America said SK Hynix is undervalued, citing robust orders from US technology companies, the firm's leading position in the premium memory chip market, and continued expansion of AI infrastructure investment — conditions it said could drive "supercycle"-level earnings.

UBS analyst Nicolas Gaudois initiated coverage of the ADR on July 30 with a buy rating and a price target of $204.

Gaudois forecast that a memory chip supply shortage could persist through 2028, arguing that "the current valuation does not fully reflect the structurally improved memory profitability, enhanced free cash flow generation, and significantly expanded shareholder returns."

The most bullish target came from Rosenblatt Securities, which set a price target of $320 for the SK Hynix ADR — implying 124 percent upside from Tuesday's closing price of $142.72, Reuters said.

As Wall Street buy calls piled up, SK Hynix's ADR surged 7.5 percent on the New York Stock Exchange to $153.50 as of 2:55 p.m. Eastern time Wednesday, compared with the previous session's close.


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