Is SK Hynix hype still here? | Markets Radar

[00:00:10]All right, ladies and gentlemen, hello, hello, and welcome. My name is Harrison Chaucas and I'm the chief market analyst here at markets.com. And today, ladies and gentlemen, this is the 22nd of July 2026. Look, um it is July and uh we are doing here a um a show basically, a new show on our uh YouTube channel. It's called Markets Radar, where we basically pick up on a story that is um important, but maybe gets overshadowed by something else. So, in this case, uh for this month, we picked up on a on the SK Hynix story and its listing on the uh US stock exchange. Mm, it's not the That's not an IPO, it's the ADR listing, basically. It's a secondary listing of a foreign um a foreign company on the US stock exchange, so that's basically uh the US uh US investment world would be able to uh profit on it in a way of Okay, maybe the word profit is uh is too big of a word.

[00:01:12]Basically, participate in the life of this company. Um look, look, uh we're going to talk about I'm going to talk about SK Hynix and basically the topic of this video is um is there still hype in this stock? Now, um before we go any further, let's quickly read through our risk disclaimer, because again, you know, with this is quite important. content we produce does not constitute investment advice or investment recommendation and should not be considered as such. This material should not be taken as an invitation to acquire any financial instrument or product. I'll give you a few seconds to read the rest. I'm not going to disappear anywhere. Um and uh also, also, I just wanted to mention the uh markets.com website, which you can always check out for more information about us. If you have any questions, reach out to us. We'll be more than happy to assist. So, I want to bring up the the stock, basically, the company, right? The the the company in question here. So, SK Hynix. And look, this this one is the SKHY, this one's listed on the Nasdaq. And here on the right, you have the the SK Hynix kind of main stock, the the one that is available on the Korean Stock Exchange, and for which we have more pricing data here than which we can actually evaluate better. Now, look, I did a show already on our markets.com YouTube channel here, which you can watch. Basically, it's when SK Hynix was showing up on the market in the US. And yes, I mean, I have picked up on that.

[00:02:49]And also in this video, I I compared the the two, SK Hynix and SpaceX. Now, this is what I want to jump into straight away.

[00:02:59]Just want to give you a quick little recap on this. Look, what I talked about before, and I did compare the two companies. Now, I talked about SpaceX a lot already as well, and that I I did that in June. So, you can watch those two videos here on SpaceX. And basically, I said that, "Look, there will be hype, of course."

[00:03:23]And you know, we have to accept that this stock, this SpaceX stock, is is great and everything. You know, you're buying into a dream in a way, right?

[00:03:33]Whereas in comparison to SK Hynix, you're here, you're actually buying the well, something physical. And SBCX mainly kind of, you know, is selling the dream of, you know, going into space and Mhm, you a lot of data centers there and you know a lot and all other stuff which in a way could happen for sure. But again, like I said, that's what I'm saying. That's why you're at the moment you're kind of buying into the story, into the idea, into the dream. Whereas with SK Hynix, you're actually buying into something that well, is needed right now. And of course SK Hynix, we know that this is one of the the two companies in Korea that is dominating the Korean stock exchange because again, you know, let's let's face it. KOSPI Where is that Where is that KOSPI? KOSPI is consisting of a lot of companies.

[00:04:30]However, >> [snorts] >> 50% are taken by Samsung and SK Hynix.

[00:04:37]And in a way we can say that well, KOSPI is kind of something like a a reflection of of SK Hynix stock here. Look at this. I mean, those two the similarities, well, you cannot ignore that.

[00:04:52]And that's understandable. The two giants, the two giants are in huge demand right now, Samsung and SK Hynix.

[00:04:58]And in the world right now, just wanted to show you very quickly the market cap.

[00:05:01]So, this is Let me refresh this. This is the rankings by market cap. So, we know we can see that SK Hynix right now is trying to gain and well, it's trying really to get back into that one trillion or closer to that one trillion mark where you know, Samsung is already in that club. So, SK Hynix really is trying to get there. Now, because of the story of or the the headline, the name of this video is you know, is there still hype?

[00:05:32]Is the hype Is the hype still there?

[00:05:36]Well, in my opinion, my honest view and again, like I said, this is purely my opinion. I do believe that there is still hype. I do believe that there is still demand because we're still going through this whole AI boom and uh yes we're seeing negative news around it coming out from you know from AI from this whole AI story we understand that you know the headlines right now we're talking about all this capex you know is it justified is it not justified if you would ask me like a quick question is it justified no it's not do I believe that the stock market could reverse at some point lower yes I do do I believe that it's going to happen right now no I kind of have this little theory idea that up until the US midterm elections nothing's going to happen and those are around November time so you kind of have to keep that story that bubble you know alive it you cannot have any needles around that not yet at least so that's why I do believe that um for now you know the market participants in a way could see this as an opportunity so where is that SK especially the US market could see this as an opportunity to step in and yep actually you know what I want to bring this I want to bring cos B back into the game here where is my cos B here I want to bring cos B here and here I will have SK H Y because I have some levels here so basically I we're seeing today nice push higher back to the upside initially we saw a bit of a decline this morning because there was some rumors that SK Hynix wants to buy Intel like one of the one of the centers of Intel what was that what was the news about that do I have it here do I have it do I have it here no I don't have it but okay anyway, the the news was that there was there were that SK Hynix wanted to buy Oh, there we go. Wait, the SK Hynix SK Hynix. Let me just find this very the story very quickly because again, like I said, it was an interesting one this this this today that I I heard and falls after memory giant denies talks to buy Intel plant.

[00:08:07]There we go. It was an Intel plant. It's not a not Intel itself, but a plant of Intel. However, that story quickly disappeared because again, it was denied because it seems like nobody wants to buy it. Again, we don't know. Is it Is it true or is it not true? Well, at the moment they denied both the sides denied, so Okay, fair enough, you know, so that's fine. However, so we saw a little bit of negativity kicking in, but as I was talking previously in one of my Markets Talk webinars as well, just briefly in mentioning this, that look, the the company is still big, right? The company if if if you would like to see SK Hynix dropping right now or you know, falling off the cliff, I think it would have a huge implication. Now, we saw KOSPI falling, you know, falling in general selling off and the market market was buzzing about how KOSPI was basically selling off a lot, you know, it was dropping at one point like 30 30% from the top.

[00:09:16]I This is something that I mentioned in my Markets Talk webinar. I said, "Look, for KOSPI, it's fine. When this when the when the index does 120% for the year, honestly, like I mean, you want it or not, you actually I'm going to treat KOSPI not like as an index. I'm going to treat it more as a as a stock because again, like 50% of the KOSPI is Samsung and and SK Hynix. So, in a way it's not really like you know, a properly weighted index or something. So, it's more of a it's more of KOSPI is like a a stock of the two stocks.

[00:09:55]So, that's how I kind of see it. So, for for KOSPI to drop 30% I'm kind of okay for that, you know, with that.

[00:10:04]For US indices or European indices to drop 30% in one go in like in one in one month, oh, that would be a bummer. In my opinion, that would be a bit of a problematic moment. And that's why we didn't see major declines in we did see corrections, but we didn't see major declines in neither in the US or EU indices.

[00:10:24]Nevertheless, coming back to the SK Hynix story. Look, long story short, I would say this way that although in my previous videos I was comparing SK Hynix to SpaceX. Like I said, I with SpaceX, I do believe that there could be some more downside. With SK Hynix, I think that given that there is still a little bit of hype and until we start seeing big problems in the capital expenditure of US US tech giants let's say please justify the capital expenditure, right? I mean, okay, and if they can't or let's say we see a drop in demand of chips and this whole for the whole infrastructure of the AI in this whole in AI infrastructure, then I would say the the hype for of of SK Hynix and and Samsung could fade away a little bit because then just simple supply demand factors are kicking in.

[00:11:25]But at the moment, while we're not seeing neither of of the come companies coming out saying, "Oh, we see a problem in the capex or something."

[00:11:35]That's why That's why I do believe that companies like SK Hynix could could still drift higher. And in a way look, it's And I think that Korea Korean government will also maybe try to do everything what's possible in their on their side to please the nation, you know, not to allow these two giants to fall off the cliff because we understand that a lot of Koreans are invested in for example, ETFs like AAVY, right? Here the AEW Y, which by the way I want to show you this also consists of like, you know, SK Hynix takes the bigger portion even than Samsung. So, your 50% of the of this of this ETF, which basically has a lot of investors Korean investors does hold also It's basically like a KOSPI as well, right? It's It's It's kind of the same story almost. So, at the moment imagine if you would allow that one to fall off the cliff as well.

[00:12:36]Oh my god, that would be a big big big problem for Korea. And of course, it could have its knock-on effect on the whole world. So, that's why for now I think that they will try to keep it afloat as as much as possible. From the US side of of course as well, they don't need you know, Korean stock market falling off the cliff because then like I said, it will it will have a knock-on effect on the on on the US market. So, the way and given that US does not cannot really really go in directly into the Korean stock stock market. Well, what they can do from their side from the US side is to maybe encourage big tech giants to continue working on the whole capex, continue presenting positive news, and well, this is the the way you can maybe actually bring bring these these companies that maybe bring the Korean market back up a little bit. Now, also of course it's also in the US benefit because again for the current White House administration you you cannot really afford right now to have a market crash, right? Of some sort because you're going into the midterm elections. Of course, I'm not saying that it's not going to happen let me it doesn't have it's or it might not happen. No, it could happen. Everything anything could happen. However, I think that not yet.

[00:14:04]Although like I said, I do believe in a decent market correction in the near in the near future.

[00:14:12]However, I do not have a definition of near future yet. It might be a year maybe two.

[00:14:17]Maybe even again, that's why I it's a difficult one, you know, we you can we can speculate as much as we want.

[00:14:24]Unfortunately, I don't have a crystal ball. I wish I wish I I wish I had.

[00:14:28]But anyway, long story short, for now like I said for now SK Hynix is the is the stock with the hype.

[00:14:38]We have Samsung as well. We're hearing these rumors that Samsung now wants to do a an ADR in in the US. I mean, that also could boost the morale right now of the of investors.

[00:14:54]However, as we all know, when you know, when you start seeing these big IPOs, big ADRs, it tends to be that we're at the end of the the cycle, you know, this of the positivity cycle. So, I mean, come on. It's like you have to be blind that this is like not really a bubble or something. As well as a the way, quick little chart here, I wanted to show you.

[00:15:24]In the margin debt relative to GDP, look at this. They look They look at this ridiculous chart here. This is This is crazy. I mean, when we were at these levels, like for example, peaks back in 2000, then what do we have? The dot-com bubble. We peaked here in 2007.

[00:15:43]Again, we all know what happened in 2007 and 8, right? We We rallied here as well back in 2021 September here.

[00:15:51]But then, you know, the stock market did correct back down as well. So, now we're crazy crazy at crazy levels here.

[00:16:00]I mean, at some point it will have to correct, you know. The The stock market will have to correct. It just keeps popping up. So, that's why in the I do believe that there could be a bigger problem approaching. However, in the short run, like I said, in a way people can still benefit on the hype. So, I'm looking at this chart here of SK Hynix, and I and I do believe that if we do pop somewhere above this 173.22 territory-ish, basically that's the the high of this week, then yeah, then I'm going to lean a little bit more to the upside back to this level that we saw here in the beginning or should I say in the mid-July.

[00:16:41]For me to start being very bearish with with SK Hynix SKHY stock, I would need to see it drop somewhere below the 145 and 1/2 zone right there. Basically, I'm doing the same SBCX model basically because I was talking about the the stock in my Markets Radar in recent Markets Radar videos, and I said that, "Look, I do believe in a larger correction here, and a drop below the 150 territory, well, that that might not look very healthy for uh for SBCX, and well, basically, there we go. Voila. Um anyway, long story short, ladies and gentlemen, I hope you found at least something useful in this little video. I I would really like to hear your thoughts or to read your thoughts. Uh please do leave comments. I like I said, we can go from there. We can discuss that. I can pick up on those comments in my next Markets Radar uh video on SK Hynix. Basically, that one's coming out on the last trading uh day of July, on the 31st of July. So, uh prepare yourself. Basically, it's going to be like a wrap-up for July, how we are ending July uh with SK Hynix.

[00:17:53]And uh yeah. So, I hope you found this useful, ladies and gentlemen. As always, stay safe, have your stop losses in place, risk only what you can afford to lose, don't overtrade, and everything will be fine. And I shall see you in my next little Markets Radar update. Bye for now.