Cantor: SK hynix trades at just 3x CY27 EPS as AI cycle proves durable
firstadopter · x · 2026-10-28
Cantor Fitzgerald reiterates Overweight on SK hynix with a $250 target, arguing the market has already priced in a downturn at just 3x its CY27 ADR-adjusted EPS estimate of $42.50:
- Acknowledges fears over AI spending sustainability, peaking gross margins, and aggressive capex — but views this AI cycle as elongated and durable, supported by TSMC/HBM/substrate constraints;
- Equipment lead times extending to 1-2 years will limit capacity additions, keeping gross margins elevated;
- The estimate doesn't yet reflect share repurchases.
The note aligns with Needham's take: supply tightness and HBM price hikes are the consensus view among sellers.
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