Deep value play is....SK Hynix?! Forward PE of under 5 but leading the HBM AI wave.
$SK
AI SUMMARY — SK Hynix is a deep value play trading at under 5x forward PE while leading the HBM (high-bandwidth memory) market for AI chips; long-term HBM contracts lock in lower prices but should justify a higher valuation multiple as AI demand sustains. Key risks include memory cycle downturns, competition from rivals, and execution on supply chain.
| TICKER | SK |
USER | u/Traditional-Chip8339 |
| RATING |
BULLISH |
ENTRY |
$23.23
|
| POSITION |
429 sh
SYN
|
BOOK VAL |
$9965.68 |
| CURRENT |
$23.31 |
P&L % |
+0.34%
|
| CURR VAL |
$10000.00 |
P&L $ |
+34.32
|
The memory cycle is real but I feel SK Hynix is getting not enough recognition for the HBM leadership role. Their earnings would be crushing so hard if they had not locked in long term pricing for HBM. The long term HBM agreements however should give them a much higher multiple in my opinion.
If you don't know what HBM is, put down your crack pipe and do some f'ing research.