SK Hynix Inc. (NASDAQ:SKHY) stock rose Thursday, joining a broad rally in memory and storage stocks after Sandisk Corp. (NASDAQ:SNDK) unveiled a bullish multiyear financial outlook at its investor day. The Nasdaq gained 1.31%, while the S&P 500 rose 0.64%.
According to Benzinga Pro, memory-related chip stocks extended this week’s gains as strong earnings across the AI, cloud and server sectors reinforced expectations for robust memory demand.
Sentiment also got a boost from Intel Corporation (NASDAQ:INTC). The chipmaker’s CEO said on a podcast that Intel is exploring “some of the new memory architecture,” describing it as one of his “pet projects.”
The rally spread across the sector. Micron Technology Inc. (NASDAQ:MU) gained about 6%, Western Digital Corp. (NASDAQ:WDC) climbed about 8%, and Seagate Technology Holdings PLC (NASDAQ:STX) advanced nearly 5%.
Sandisk’s Bullish Targets Lift Memory Stocks
Sandisk stock surged after the company outlined targets that included an adjusted gross margin of about 80% and an adjusted free cash flow margin of roughly 50%.
The company also plans to return 100% of excess cash to shareholders after investing in the business. The ambitious outlook added to bullish sentiment across the memory sector.
Analysts See More Upside For SK Hynix
SK Hynix has a Buy consensus rating and an average price forecast of $245.50.
Wolfe Research and RBC Capital initiated coverage Aug. 4 with Outperform ratings and $200 price forecasts. Cantor Fitzgerald began coverage the same day with an Overweight rating and a $300 price forecast.
The stock is also held by the NestYield Dynamic Income ETF (NYSE:EGGY) and NestYield Visionary ETF (NASDAQ:EGGQ), with a 4.77% weighting in each.
SKHY Price Action: SK Hynix shares rose 8.13% to $166.96 at the time of publication Thursday, according to Benzinga Pro data.
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