SKHY

ChangXin Memory Technologies reported first-half revenue of 150.31 billion yuan ($22.4 billion) on Friday, a rise of 874% from a year earlier, as a global shortage of memory chips driven by artificial intelligence demand sent prices higher. The Hefei-based company, which goes by CXMT, also turned profitable, recording net income of 77.61 billion yuan after having reported a 2.3 billion yuan loss in the prior full year. Revenue for the first half alone more than doubled what the company brought in across all of 2025, when it recorded 15.4 billion yuan in sales. Both revenue and profit topped the company's own guidance of 110 billion yuan to 120 billion yuan in sales. The results are the first CXMT has posted since its Shanghai initial public offering last month. The company is the world's fourth-largest maker of DRAM memory chips, behind Samsung Electronics, SK Hynix, and Micron Technology. CXMT pointed to tightening global DRAM supply as the engine of its results, and said the same conditions are expected to persist through the remainder of the year. AI companies have moved to secure memory chips for data centers, tightening supply and pushing up prices. Research firm TrendForce estimates that contract prices for server DRAM rose 64% in the second half of 2025, according to the Wall Street Journal. CXMT also said its forthcoming LPDDR6 memory, a chip category aimed at smartphone and tablet applications, has reached the client evaluation stage and remains on schedule for full-scale manufacturing. The company's R&D budget expanded 87% to 6.86 billion yuan over the period, while headcount in its engineering and research ranks climbed 61% from a year ago to close to 7,500 employees. CXMT stock surged more than 466% on its trading debut in July and has continued to climb since. The company now has a market capitalization of 3.28 trillion yuan, making it China's most valuable listed company ahead of Tencent Holdings and Alibaba. According to Bloomberg, Goldman Sachs puts CXMT's valuation at around 10 times its projected 2027 earnings, placing it at a cheaper multiple than the chipmaker's international rivals. The U.S. Department of Defense recently placed CXMT on a blacklist, though the company said on Friday the designation will not affect its day-to-day operations. For all its momentum, CXMT remains a distant challenger to the industry's leaders, with Samsung, SK Hynix, and Micron collectively commanding upward of 90% of global DRAM supply, according to the Wall Street Journal.

One of the most influential companies in the artificial intelligence (AI) race, SK Hynix (SKHY) just reported earnings on July 29. The memory maker published its second-quarter results to the chagrin of the market, which saw shares fall from a high approaching $180 heading into the report to the $125 level. Now, though, the market has taken a breather and some time to understand the Q2 results, with shares of SKHY stock rebounding slightly. Let's dive into what to make of these numbers, and why SK Hynix is among the AI-related stocks taking a hit right now. Shaq Says His Dad Treated Him to White Castle, But When He Saw Homeless Man With a Sign, He Gave 3 of His Burgers to the Guy — ‘Always Look Out for the Little Man’ Micron vs. SK hynix: One Stock Rules AI Memory. The Other Has More Room to Run. Rocket Lab Investors Have Plenty to Cheer Ahead of Q2 Earnings Today Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! SK Hynix's most recent earnings report showed continued growth for the memory maker, with revenue surging 51% from Q1 2026 and operating profits surging 61% over the same period. What this indicates to me is that SK Hynix is actually seeing margin expansion at a time when many other similarly positioned companies are struggling. Whether this means growth in the bottom line can continue unabated remains to be seen. But for now at least, the robust demand that SK Hynix is seeing from Big Tech companies ordering hardware to fuel their AI expansions should bolster near-term upside over the long term. What took SKHY stock lower following the report? Well, the fact that the company missed the whisper number on the Street, with guidance that wasn't as strong as expected. That's despite breaking a number of historical benchmarks during the quarter, with a new Nasdaq listing among the key catalysts many bulls looked toward. As part of the earnings report, SK Hynix noted plans to bolster its manufacturing capacity at key facilities, utilizing existing infrastructure to do so. To me, that's a very bullish development, considering the microscope that investors are placing on tech giants when it comes to capital expenditures. As mentioned earlier, the company's margins remain very strong. That said, I think it's perhaps more important to point out the memory giant's forward price-to-earnings (P/E) multiple, which sits below 6 times. That's very cheap for any stock, never mind a company that's growing its top line by more than 50%. Yes, SK Hynix does have a price-to-sales (P/S) ratio above 10 times. That's high by most measures. But considering the company's margins, growth fundamentals, and expectations that its growth should continue for the coming quarters, this is a stock for which investors are clearly pricing in some serious slowing on the growth front. That's what I'm taking from this recent reaction to the South Korean memory maker, at least for now. Currently, the average price target for SK Hynix stock on Wall Street is $245.40 per share. That's an important price target, as it signifies potential upside of about 75% from current levels. Any stock that can surge by the order of 75% in a given year is certainly one that many retail investors will find enticing. I'm one such investor, and I don't think this mean price target is outlandish by any means. That said, the market is giving us important information following this recent print — specifically, the idea that more market participants will remain cautious for some time. I think that's fair, and there's likely some air that should come out of this bubble before a reflation trade begins. I don't know when such a multiple expansion backdrop will make itself known, but SKHY stock is one name that could have some major upside once investors fully deleverage. All told, I agree with analysts on this one, with SK Hynix remaining near the top of my watch list right now. On the date of publication, Chris MacDonald did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Memory specialist Micron Technology (NASDAQ: MU) trades near $878 as of this writing, at about 20 times its trailing earnings but only about 6 times the earnings analysts expect over the coming year. Earnings are climbing so fast that next year's expected number dwarfs the trailing one. And the market is paying about 6 times for it because it assumes the good times end soon. Memory has always worked that way: High prices attract new supply, and new supply ends the boom. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » But last Friday, the supply that is supposed to end this one got a price tag and a schedule. SK Hynix committed about $38 billion to two new fabs -- and the first of them doesn't open a clean room until December 2028. The earnings the market is discounting are not hypothetical. In its fiscal third quarter (ended May 28, 2026), Micron's revenue more than quadrupled year over year to $41.5 billion, up from $23.9 billion just one quarter earlier. Gross margin ran 84.6%, compared to 74.4% in fiscal Q2 and 37.7% a year ago. Operating cash flow, meanwhile, more than quintupled year over year to $25.4 billion. Management expects more. Guidance calls for fiscal fourth-quarter revenue of about $50 billion, gross margin of about 86%, and earnings per share of about $30.73. Annualize that guided quarter alone and the stock trades at about 7 times earnings. Data center demand is driving all of it. Micron's data center revenue exceeded $25 billion in fiscal Q3 (more than $100 billion annualized). And in prepared remarks for its June earnings call, the company said industry demand for DRAM and NAND "continues to significantly exceed industry supply." For a memory stock, what matters is when supply arrives. On Friday, SK Hynix's board approved 54 trillion won (about $38 billion) for the two new fabs. The bigger piece, 35.2 trillion won, goes to a DRAM plant in Yongin, South Korea, called Y2. The rest, 19.1 trillion won, funds a NAND plant in Cheongju called M17. I'd argue the schedule matters more than the dollar figure. M17 breaks ground in February 2027 and opens its first clean room in December 2028. Y2 doesn't break ground until July 2027, and its first clean room opens in June 2029. And a first clean room typically marks the start of equipping a fab, not the start of volume output. Capacity decided on today, in other words, is 2028-and-beyond capacity. That squares with what Micron itself has been saying. In the same June remarks, Micron said it expects tight conditions "to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints." Of course, some new supply lands sooner. SK Hynix's first Yongin fab, already under construction, is slated to open its first clean room in February 2027. Micron itself is spending at record levels, too ($7.1 billion of capital expenditures in fiscal Q3 alone). However, even with all of that in motion, Micron still expects tightness through 2027. The fabs approved last week arrive after that. Micron has also spent this boom locking in what happens when it ends. The company has signed 16 strategic customer agreements -- take-or-pay contracts, meaning customers commit to buying specific volumes over multiple years. The agreements typically run five years, from calendar 2026 through the end of calendar 2030. Together, they cover roughly 20% of Micron's DRAM volume and about a third of its NAND volume over that period. Management expects half or more of company revenue to eventually fall under these agreements. The largest of them generally carry price ceilings set at calendar second-quarter 2026 market prices, with price floors that hold through the term. In a downturn, those floors should put a boundary under how far Micron's contracted revenue can fall. CEO Sanjay Mehrotra said in the June earnings release that these agreements "will significantly enhance the durability and predictability of Micron's strong financial performance." Ultimately, the cycle will still turn. Memory cycles always have, and record prices are financing the capacity that could end this one. But at a valuation of about 6 times expected earnings, the stock is priced as if that ending is close. The construction schedules the industry itself has published put the big additions in 2028 and 2029, and Micron's contracts run through 2030. To me, the business looks likely to keep earning at something like this pace longer than the market is paying for. The main risk isn't the construction schedule -- memory prices could fall without a single new fab opening if artificial intelligence (AI) demand cools. But based on what the industry has committed to build, the turn arguably sits further away than the price assumes. Before you buy stock in Micron Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!* That performance is why people listen. 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Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. SK hynix stock has fallen 17.9% year to date, yet its valuation checks and recent expansion plans in high bandwidth memory keep the debate open on whether the current price offers enough compensation for the risks the company is taking on. Year to date the share price is down 17.9%, which means investors are now looking at the stock from a very different entry point compared with the strong run highlighted earlier this year. The approved plan to invest about US$38b in new memory chip factories can support future revenue potential, but it also raises questions about execution risk and the long lead time before these assets fully contribute to cash flow. On Simply Wall St's checks, SK hynix screens as undervalued on 4 out of 6 measures, which is a mixed picture rather than a clear bargain or clear overvaluation, and you can see the detail in the value score of 4/6. The issue now is whether this combination of a weaker recent share price and a mixed valuation profile properly reflects the scale of SK hynix's investment plans and the risks attached to them. SK hynix delivered 0.0% returns over the last year. See how this stacks up to the rest of the Semiconductor industry. The P/E ratio is a useful way to see what you are paying for each dollar of SK hynix earnings. It keeps the focus squarely on how the market values the company’s current profit stream. SK hynix trades on a P/E of about 6.4x, which is far below the semiconductor industry average of roughly 52.6x and the peer group average of about 61.3x. Even after the recent US listing and the attention around its AI focused memory chips, the stock is priced at a large discount to where many semiconductor stocks trade on earnings. Recent headlines around the US$38b investment program and AI related demand have brought SK hynix firmly into the spotlight, yet the current P/E still sits well under typical sector levels. For investors who prefer to anchor decisions to earnings based multiples, this spread indicates that the market is setting a relatively low price tag on the company’s current profit base compared with many peers. On the P/E multiple alone, SK hynix stock currently appears inexpensive compared with the wider semiconductor sector. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where SK hynix's valuation puzzle leaves off by spelling out what would need to happen to growth, margins and earnings for the stock to be worth materially more or less than today’s price. Each Narrative links a fair value estimate to a specific story about SK hynix's potential catalysts and risks, so you can track over time which scenario appears closest to what the business is actually delivering on the Community page. You can add your voice to the Simply Wall St community by sharing a Narrative on SK hynix that sets out a clear, number driven view on whether the approved US$38b factory build out delivers enough value to justify today's pricing. Put your thesis on the record now and see how it holds up as SK hynix's results and project milestones are reported over time. Do you think there's more to the story for SK hynix? Head over to our Community to see what others are saying! For SK hynix, the key question is whether the current discount on earnings is compensation for the execution and timing risks tied to its large expansion in high bandwidth memory. Market multiples point to an undervalued stock, yet the broader valuation checks are mixed rather than emphatically supportive. From here, the crux of the debate is whether the planned factory build out and AI related demand translate into reliable enough earnings to justify even a modest re rating, or whether the current gap simply reflects the real risk that these investments take longer, or cost more, than investors are willing to tolerate. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SKHY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Seagate Technology Holdings plc (NASDAQ:STX)'s shares have caught a lot of quarters, including Cramer, by surprise in today's AI-driven era of investing. They are up by 447% over the past year and by 181% year-to-date. The CNBC TV host has discussed Seagate Technology Holdings plc (NASDAQ:STX) several times over the past couple of months. For instance, in May, he commented on the firm's earnings multiple and remarked that it was "too pricey, [at] nearly 50 times next year’s earnings estimates." After Seagate Technology Holdings plc (NASDAQ:STX) reported its fiscal fourth quarter earnings in late July, Cramer praised the results and was exasperated by management's comments during the earnings call: Cramer's remarks about slowing demand are also at the center of the debate raging around Seagate Technology Holdings plc (NASDAQ:STX). The bulls and the bears are torn about whether the booming demand that the firm is experiencing is part of a new trend where it's sustainable or whether it will follow the historically cyclical patterns of the storage industry. The booming demand led Seagate Technology Holdings plc (NASDAQ:STX) to grow its fiscal fourth quarter revenue to $3.6 billion to mark a 48.5% annual growth. Additionally, higher demand also enabled the firm's margins to expand to 52.7%, which was a significant jump over Q4 2025's 37.9%. The strong set of results led the bulls to argue that Seagate Technology Holdings plc (NASDAQ:STX) was experiencing sustainable demand driven by the ongoing AI infrastructure buildout. Yet, the strong share price performance makes the bears anxious. They point out that as Seagate Technology Holdings plc (NASDAQ:STX)'s shares have jumped by triple-digit percentages, the firm's future growth might already be priced into the stock. Additionally, they add that the firm might also have to depend to a large extent on its future Heat-Assisted Magnetic Recording (HAMR) products and the Mozain platform to maintain its market share. While the bulls believe that the high-density drives have enabled margin expansion, the bears caution that should the industry shift towards solid-state drives (SSDs), Seagate Technology Holdings plc (NASDAQ:STX) might experience headwinds. In Q4 2025, 74 out of the 1,041 hedge funds part of Insider Monkey's database had held a stake in Seagate Technology Holdings plc (NASDAQ:STX). In Q1 2026, this figure jumped to 93 out of 1,022 hedge funds. Arrowstreet Capital remained the biggest stakeholder even though its $561 million stake marked a 56% drop. A notable jump came from D E Shaw, which bumped its stake by 62% to $505 million. As for the short sellers, 3.7% of the float was short as of mid-July. While Insider Monkey acknowledges the risk and potential of STX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than STX that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: Jim Cramer Draws the Line on NVIDIA in China: Why National Security Comes First and Jim Cramer Defends His Dell Stance as Investors Complain About Missing Out. Disclosure: None.

The summer rout in momentum stock Sandisk (SNDK) could end depending on its Wednesday earnings report. The numbers are likely to be strong, which could put the stock back on the right course. Sandisk stock has had a rough go of it. Ahead of the company's earnings report, the stock has breached its 50-day and 100-day moving averages, per Yahoo Finance AlphaSpace data. The stock hasn't tested the 200-day moving average amid the summer slide. If Sandisk is able to surpass Wall Street’s high expectations for the quarter and strike another bullish tone on its earnings call, the stock could retest the 50-day moving average at $1,707. That would still put the stock well below its late-June record high of about $2,354. Companies such as Sandisk, SK Hynix (SKHY), Samsung Electronics (005930.KS), and Micron (MU) have largely sold out of their premium AI memory chips through much of 2026. Customers like Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN), and Meta (META) are racing to build AI infrastructure. The shortage has pushed memory prices sharply higher and given suppliers greater pricing power after several years of weak industry conditions. Experts expect memory supply to remain constrained into 2027, creating a favorable backdrop for the industry's largest producers. The dynamic pushed the stock prices of Sandisk, Micron, and other players in the chip space to record highs in late June. Since then, however, the pullbacks in the space have been enormous due to fears of Big Tech overspending on AI. Sandisk and Micron are down 25% and 13%, respectively, over the past month, according to Yahoo Finance AlphaSpace data. But Apple's (AAPL) earnings report last week reminded everyone that the demand and pricing backdrop for memory chip players remains robust. Now, Sandisk is poised to do its own reminding. Revenue for Sandisk in its most recent quarter is estimated to surge to $8.39 billion from $1.90 billion last year. BofA analyst Wamsi Mohan: "We expect supply/demand imbalance in the NAND market to remain through 2027 and expect pricing to remain strong for longer (through mid-2027), albeit growing at a lower quarter over quarter percentage rate over time. For the June quarter, we model bit growth of 13% quarter over quarter and average selling price growth of 35% quarter over quarter. This is higher than the NAND bit growth reported recently by competitor Micron Technology, but lower than the quarter over quarter average selling price growth reported by that company." Brian Sozzi is Yahoo Finance's Executive Editor, host of the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email [email protected]. Click here for in-depth analysis of the latest stock market news and events moving stock prices Read the latest financial and business news from Yahoo Finance

Sandisk SNDK is expected to have benefited from strong Data Center and Edge revenues in the fourth quarter of fiscal 2026, the results of which are scheduled to be released on Aug. 5, 2026. Click here to know how SNDK’s overall fiscal fourth-quarter performance is likely to be. Sandisk’s Data Center business is expected to have benefited from accelerating AI infrastructure investments and rising enterprise SSD adoption in the fourth quarter of fiscal 2026. The company has built a comprehensive enterprise SSD portfolio centered on high-performance TLC drives for AI inference workloads and QLC solutions for capacity-intensive applications.Strong demand from hyperscale cloud providers, expanding customer qualifications and increasing adoption of AI storage architectures likely supported higher enterprise SSD shipments during the reported quarter. Management also emphasized that inference workloads, including KV Cache and retrieval-augmented generation (RAG), are driving greater demand for low-latency NAND storage, positioning Sandisk to benefit from the ongoing expansion of AI data centers. Sandisk Corporation revenue-ttm | Sandisk Corporation Quote The Zacks Consensus Estimate for fiscal fourth-quarter Data Center revenues is pegged at $2.714 billion, indicating sequential growth of 85%.However, Sandisk is facing stiff competition from the likes of Micron Technology MU, Seagate Technology STX and SK Hynix SKHY in the data center space. Micron poses a significant competitive threat to Sandisk in both the data center and edge markets through its expanding enterprise SSD portfolio and AI memory leadership. SK hynix is strengthening its position against Sandisk by rapidly expanding its enterprise SSD business alongside AI memory products. Seagate is emerging as a formidable competitor by promoting HDDs as an essential component of AI storage architectures rather than relying solely on flash. Sandisk’s Edge business is expected to have benefited from increasing adoption of AI-enabled PCs and premium smartphones, which require higher-capacity, high-performance flash storage. Management noted that on-device AI capabilities are raising storage requirements, resulting in a favorable mix toward premium configurations and higher-value customers. The company also pointed to healthy demand across PCs, smartphones, automotive and IoT markets, supported by broad-based adoption of NAND across intelligent edge devices. These trends, combined with Sandisk’s strong position in client storage solutions, are likely to have supported Edge revenues during the reported quarter.The Zacks Consensus Estimate for fiscal fourth-quarter Edge revenues is pegged at $4.396 billion, indicating sequential growth of 20%. Sandisk currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sandisk Corporation (SNDK) : Free Stock Analysis Report Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report SK Hynix, Inc. - Sponsored ADR (SKHY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research