SK Hynix's American Depositary Receipts (ADRs) surged 6% in US trading, reaching $189.66 in real-time trading. According to reports from Reuters, this strong performance in US markets follows the company's impressive gains on the Korea Exchange, where shares rose 3.98% by 11:20 a.m. KST on Tuesday. Meanwhile, Intel shares experienced an even more dramatic surge, climbing 8.42% to $103.87, up $8.07 from the previous session's close of around $95.80.
JPMorgan has initiated coverage on SK Hynix with an Overweight rating and a $245 price target for June 2027, based on a 20% premium for ADRs over local share price. The investment bank expects the company to deliver a 34% compound annual growth rate in earnings per share over the next two years, underscoring its bullish view on sustained AI-led memory demand. The valuation implies approximately seven times the average earnings per share expected for fiscal 2026-27, reflecting JPMorgan's confidence in the prolonged AI-led memory upcycle.
Intel shares surged over 8% following reports of a 10% PC processor price increase planned for early October. Supply-chain sources cited by DigiTimes reported that the chipmaker could increase PC CPU prices by approximately 10% in early October, marking the latest in a series of price increases initiated in late 2025. The move aims to boost revenue and improve profit margins as the company seeks to strengthen profitability and move away from a volume-driven approach towards better margins and sustainable profitability. However, higher prices could also test demand in the PC market if customers face higher costs.
The memory-chip maker's performance significantly outpaced broader semiconductor stocks, with SK Hynix shares extending their strong rally on Tuesday. According to Reuters reports, the company's gains were driven by expectations of strong AI infrastructure demand, which has been a key driver for the semiconductor sector's recent performance. Meanwhile, Intel shares outperformed the broader market despite a cautious trading environment, with the S&P 500, Dow Jones Industrial Average and Nasdaq trading lower. The contrasting performance highlights the selective nature of the current semiconductor market rally.
Adding to positive sentiment, Northland upgraded Intel to Outperform from Market Perform and set a $120 price target, citing progress in the company's turnaround, server CPU shortages and the Terafab partnership. Intel has also highlighted progress in advanced semiconductor manufacturing, with Intel Foundry and ASML recently announcing that more than one million wafers have been processed using High NA EUV lithography technology. These developments, combined with the potential CPU price hike and JPMorgan's bullish outlook, provide multiple catalysts for continued investor optimism despite broader market weakness.
