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SK hynix logo is seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
SEOUL, July 15 (Reuters) - Shares in SK Hynix (000660.KS), opens new tab jumped as much as 12.7% in morning trade in Seoul on Wednesday, tracking overnight gains in U.S. technology stocks after softer-than-expected U.S. inflation data, while also drawing support from Barclays' initiation of research coverage.
Barclays placed an "overweight" rating and a $330-a-share price target on the company's newly listed American Depositary Receipts (ADRs) , which surged nearly 28% to $193.92 on Nasdaq on Tuesday.
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The S&P 500 and the Nasdaq advanced on Tuesday as solid big bank results and a cooler-than-expected inflation report boosted risk appetite amid rising Middle East tensions.
The Labor Department's Consumer Price Index showed inflation cooled more than analysts expected in June, largely due to abating energy price pressures amid last month's signs of progress in U.S.-Iran peace negotiations.
The gains came after weeks of volatility in chip stocks, as investors grappled with concerns over a potential slowdown in memory earnings growth as quarterly price increases moderate in the second half of 2026.
They have also questioned whether signs of slowing capital spending by major U.S. cloud service providers, rising financing needs and recent multi-billion-dollar capacity expansion plans by memory makers could eventually ease the industry’s supply-demand imbalance that has fuelled the chip stock rally.
However, some analysts remain optimistic that structural demand from AI applications will keep the market tight.
Kim Sunwoo, a senior analyst at Meritz Securities, said suppliers of DRAM chips, used for memory in computers, servers and mobile devices, were currently meeting only about 75% to 80% of demand as shortages intensified in the second half of 2026.
That fulfilment rate could fall to the 60% range in 2027, Kim said, adding that suppliers would still be able to meet only around 70% of demand even after excluding more speculative orders.
"With supply shortages set to deepen, memory prices and earnings are likely to continue improving, supporting a strong rebound in the share price," Kim said.
Reuters reported last week that SK Hynix Chief Executive Kwak Noh-jung expected the global memory industry to face its worst-ever supply shortage in 2027, with demand continuing to exceed the company’s production capacity well beyond 2030 despite aggressive expansion.
The benchmark KOSPI (.KS11), opens new tab was up 7.0% as of 0028 GMT.
Reporting by Heekyong Yang; Editing by Jamie Freed and Sonali Paul
Our Standards: The Thomson Reuters Trust Principles., opens new tab
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