SK Hynix’s Shares Soar — Why Barclays Sees Potential For The Stock To Double

• Barclays set a $330 price target, more than double the stock’s closing price on Monday.
• The bank expects a continued memory shortage to support higher pricing and drive revenue growth.
• Barclays also believes SK Hynix’s strong cash position could fund sizeable share buybacks, providing an additional boost to earnings growth.

US-listed shares of SK Hynix (SKHY) surged over 22% on Tuesday as Barclays initiated coverage on the South Korean memory maker with an ‘Overweight’ rating.

The bank said SK Hynix shares could double over the next year, citing the ongoing memory shortage, pricing power and strong positioning in high-bandwidth memory (HBM).

At the time of writing on Tuesday afternoon, SKHY shares were trading 22.19% higher and ranked among the top 10 trending tickers on Stocktwits.

Barclays’ Price Target For SK Hynix

Following its Nasdaq debut last week, SK Hynix shares could rise further, according to Barclays. The bank started coverage with an ‘Overweight’ rating and a $330 price target, implying an upside of nearly 117% from the stock’s Monday’s close.

Barclays analysts said the key driver for SK Hynix will be the continued shortage of memory across the technology sector, which could allow for price increases and boost revenue growth, according to a report in CNBC.

“We see some upside to gross margins nearer term but the biggest delta to Bloomberg consensus is materially higher 2027 revenues driven by HBM pricing uplift and SKHY’s strong position,” Simon Coles at Barclays wrote in a Tuesday note to clients, according to the CNBC report.

Barclays also sees potential for SK Hynix to use its balance sheet for share buybacks. The firm estimated that the company will hold cash equivalent to more than 40% of its current market capitalisation by the end of 2027, providing an opportunity to boost earnings growth through share buybacks.

SK Hynix Stock Moves: How Did Stocktwits Retail React?

On Stocktwits, retail sentiment for SK Hynix remained ‘neutral’ over the past 24 hours, while message volume was ‘extremely High’ at the time of writing.

Barclays’ bullish stance is in line with broader Wall Street sentiment. According to Koyfin data, 36 of the 37 analysts covering SK Hynix rate the stock ‘Buy’ or ‘Strong Buy,’ while one analyst has a ‘Hold’ rating.

A Stocktwits user pointed to Barclays’ bullish outlook on SK Hynix, saying the “bull case is simple” with a “stronger 2027 revenue outlook” driven by “HBM pricing and SK Hynix’s market position.” The user added that the “ADR setup looks supported if memory pricing keeps firming.”

In a recent Stocktwits poll asking investors which memory stock could deliver the highest returns over the next year, 22% of nearly 3,000 respondents selected SK Hynix. Micron was the top choice, receiving 56% of the votes.

Also See: AAPL Stock Slips — Why This Analyst Turned Bearish On Apple After The iPhone Maker Hit An All-Time High 

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