SK hynix Inc. (NASDAQ:SKHY) stock gained by more than 2% during Friday’s premarket session as risk appetite improves into the open and chip-linked names catch a bid. Nasdaq futures are up 0.52% while S&P 500 futures have gained 0.32%.
The company is considering a potentially large manufacturing expansion in Japan as it evaluates ways to increase memory-chip capacity amid rising global demand.
Japan Plant Could Mark Major Regional Expansion
SK hynix is weighing plans for a new memory-chip manufacturing facility in Japan’s Miyagi prefecture, with a potential investment running into tens of trillions of won, Reuters reported Friday, citing Hankyoreh.
The proposed investment would expand SK hynix’s production footprint into northeastern Japan, one of the country’s designated semiconductor industry hubs.
SK Group Chairman Chey Tae-won recently visited the area, according to the report. If SK hynix proceeds with the project, it would mark the first large-scale semiconductor manufacturing investment in Japan by a South Korean chipmaker.
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $245.50 (high: $320.00; low: $200.00) across 10 analysts. Recent analyst moves include:
- Wolfe Research: Initiated with Outperform (Forecast $200.00) (Aug. 4)
- RBC Capital: Initiated with Outperform (Forecast $200.00) (Aug. 4)
- Cantor Fitzgerald: Initiated with Overweight (Forecast $300.00) (Aug. 4)
Top ETF Exposure
- NestYield Dynamic Income ETF (NYSE:EGGY): 4.77% Weight
- NestYield Visionary ETF (NASDAQ:EGGQ): 4.77% Weight
Significance: Because SKHY carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
Price Action
SKHY Stock Price Activity: SK hynix shares were up 2.21% at $166.68 during premarket trading on Friday, according to Benzinga Pro data.
Photo via Shutterstock
Login to comment