SK Hynix Stock Price Forecast: Singapore Sovereign Wealth Fund Temasek Says It Is Severely Undervalued, Can the Stock Return to $170?

TradingKey - On August 12 Eastern Time, SK Hynix ADR (SKHY) stock returned above $150.

It is reported that Samsung Electronics and SK Hynix will announce new shareholder return plans as early as the end of August. The combined return scale of the two companies may exceed 200 trillion won (approximately $141.2 billion), potentially setting a record high. Both companies currently stated that the specific timing and scale of the announcement have not yet been finalized.

Samsung Electronics and SK Hynix will announce new shareholder return plans as early as the end of August. The combined return scale of the two companies may exceed 200 trillion won (approximately $141.2 billion), which is expected to set a new record high. Both companies currently stated that the specific timing and scale are not yet finalized.

According to financial data released by the company, SK Hynix reported second-quarter revenue of 79.3 trillion won and operating profit of 60.5 trillion won. As of the end of the second quarter, cash and cash equivalents reached 88 trillion won, an increase of 33.6 trillion won quarter-on-quarter; borrowings dropped to 18.6 trillion won, and net cash expanded to 69.4 trillion won.

The market expects that SK Hynix may implement tens of trillions of won in returns in the future through special dividends, share repurchases, and cancellations, with the scale potentially approaching 100 trillion won in extreme cases.

In addition, Singapore sovereign wealth fund Temasek plans to make its first direct investment in the South Korean stock market, targeting Samsung Electronics and SK Hynix and viewing these two global memory chip giants as severely undervalued targets in the AI value chain.

Temasek has recently contacted the South Korean government regarding investment in Samsung Electronics and SK Hynix and is currently evaluating the timing of entry.

An official from South Korea's financial regulatory authority stated that the share prices of both companies are currently experiencing sharp volatility due to the South Korean government's recent permission for single-stock leveraged ETFs to list. Against this backdrop, Temasek is seeking to confirm a fund execution window. This will mark Temasek's first direct investment in the South Korean securities market.

SK Hynix two-hour stock chart, Source: TradingView

Looking at the stock chart for SK Hynix, after stabilizing near $133, it staged a rapid recovery and currently stands above the 0.618 Fibonacci retracement level ($151.61) as well as the 5-day, 10-day, 20-day, 40-day, and 80-day moving averages. In the short term, it has transitioned from low-level consolidation to a strong rebound phase, with the former moving average resistance zone gradually converting into downside support. However, it is approaching the 0.786 Fibonacci retracement level ($156.45) above, and the buying support after a breakout still needs to be confirmed.

If the stock price can hold above $151.61 going forward, the current rebound is expected to extend further upward; if it quickly drops back below this level, caution is still needed against a pull-back following the breakout.

In the short term, primary support lies at the 0.618 Fibonacci retracement level ($151.61), which serves as the core dividing line between strength and weakness following the recent major bullish candlestick breakout. If it holds firm after a pull-back, the stock price remains poised to continue challenging the 0.786 Fibonacci retracement level ($156.45). The second support level below is at the 0.5 Fibonacci retracement level ($148.11), and further down is the support zone formed by the 0.382 Fibonacci retracement level ($144.81) and the 20-day and 40-day moving averages.

On the upside, if it effectively breaks out and holds firm above $156.45, the next target will point toward the 1 Fibonacci retracement level ($162.62), with further resistance located at the 1.272 Fibonacci extension level ($170.46).